BUSINESS

Bank of Cyprus depositors lose 47.5 per cent of uninsured savings as part of national bailout

The Associated Press Published Monday, July 29, 2013 9:04AM EDT

A hat with money belonging to a musician is seen on the ground as he plays music at the main shopping street in central capital Nicosia, Cyprus on March 30, 2013. (AP / Petros Karadjias)

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NICOSIA, Cyprus -- The Cypriot government says depositors at the country's largest bank will lose 47.5 per cent of their savings over the 100,000-euro ($132,000) insurance limit.

Losses at Bank of Cyprus were initially estimated at 37.5 per cent. Another 22.5 per cent of the deposits remained tied up while experts calculated how much money the bank would need to remain solvent. Government spokesman Victoras Papadopoulos announced the figure Monday.

Depositors hit with losses will get shares in the bank.

Large depositors in Cyprus' two biggest lenders were forced to take losses as a condition of a 23 billion-euro ($30.5 billion) rescue package the country agreed on with its eurozone partners and the International Monetary Fund in March.

Restrictions on money withdrawals and transfers were imposed for all banks to head off a run.