From the article:
Deposits above 100,000 euros, which under EU law are not guaranteed, will be frozen and used to resolve debts, and Laiki will effectively be shuttered, with thousands of job losses.
The revised bailout plan may not require further parliamentary approval since the idea of a levy was dropped.
The tottering banks hold 68 billion euros in deposits, including 38 billion in accounts of more than 100,000 euros – enormous sums for an island of 1.1 million people which could never sustain such a big financial system on its own.
- Cyprus Reaches Bailout Deal With International Lenders (Huffington Post/Reuters, March 25, 2013):
* Deal to shut Laiki bank, transfer insured deposits
* Clinched hours before Monday deadline to seal EU bailout
* Without deal banks faced collapse, possible euro zone exit
BRUSSELS, March 25 (Reuters) – Cyprus clinched a last-ditch deal with international lenders on Monday for a 10 billion euro ($13 billion) bailout that will shut down its second largest bank and inflict heavy losses on uninsured depositors, including wealthy Russians.
The agreement emerged after fraught negotiations between President Nicos Anastasiades and heads of the European Union, the European Central Bank and the International Monetary Fund – hours before a deadline to avert a collapse of the banking system.