Cyprus compensates ex-Laiki bank depositors

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Cyprus compensates ex-Laiki bank depositorsPresident Nicos Anastasiades said that Cyprus would compensate Russian bank depositors who lost cash as part of the terms of the island’s €10 billion bailout. When the economy revives, it is planned to set up a special fund to collect the cash that will also include revenues from future sale of natural gas, Anastasiades said in an interview with Russian news outlet Itar-Tass. Cyprus debated heavy terms of a €10 billion bailout in March, which included the closure of its second biggest bank Laiki Bank and seizing uninsured deposits to recapitalise the largest lender, Bank of Cyprus (BoC). Russians have lost part of their deposits and Cyprus will do everything possible to overcome the negative effects of the March decision, the President added. Depositors who lost their money were given BoC equity in return. The bank’s board of 16 individuals now includes six non-Cypriots, mostly Russians, representing individuals who lost considerable amounts of money in the forced conversion to equity of 47.5 percent of deposits exceeding €100,000.