Mediterranean Island: Bank and Eurozone Crisis

mediterranean island: The Mediterranean island was at the heart of the eurozone crisis in 2013 when a rescue deal for Bank of Cyprus its biggest lender was a key part of measures need to keep the country inside the single currency area, according to The Guardian. Laiki, or Cyprus Popular Bank, was closed and its smaller depositors placed in Bank of Cyprus, which in turn imposed losses on savers holding deposits more than 100,000, many of whom were said to be Russian. Under John Hourican, a former senior executive at Royal Bank of Scotland who left during the Libor rigging crisis, Bank of Cyprus has undergone a radical restructuring and repaid all but 800m 690m of 11.4bn emergency liquidity assistance used to keep it afloat at the peak of the island economic meltdown. Brexit leaves London-based banks facing nightmarish choices Read more It was first bank in the eurozone to take a slice of customers savings as part of the international 10bn bailout of the island to avoid recourse to taxpayers. Ackermann is a former chief executive of Deutsche Bank, itself mired in financial difficulties. Hourican, who is Irish, tried to leave last year but was convinced to stay on by veteran banker Josef Ackermann, who became chairman of Bank of Cyprus in 2014 when it received a capital injection from a group international investors led by private equity billionaire Wilbur Ross. (news.financializer.com). As reported in the news.