Rejoyce! Cyprus is saved!
From what, you may ask?
Who cares? They will take 40% of uninsured (over 100,000 euros) deposits at one bank, and take 100% of such deposits at another bank so that they can pay international creditors, and say "it's for the people of Cyprus".
It's for the people of Cyprus but the Cypriot Parliament doesn't need to vote, says Germany's fin min Wolfgang Schaeuble.
Stock market futures jump on this merry news of yet another save for the large financial institutions in Europe and the US.
(Photo is Cyprus President Nicos Anastasiades emerging from the meeting, from Nikkei.)
From Bloomberg News (3/24/2013):
Cyprus Said to Reach Tentative Deal to Avert Default
Cyprus agreed to the outlines of an international bailout, paving the way for 10 billion euros ($13 billion) of emergency loans and eliminating the threat of default.
The accord between Cyprus and the “troika” representing international lenders was reached in overnight talks in Brussels and ratified by finance ministers from the 17-nation euro area.
“It’s in best interest of the Cyprus people and the European Union,” Cyprus President Nicos Anastasiades told reporters.
...The agreement calls for Cyprus Popular Bank Pcl (CPB) to be shut down and split. The Bank of Cyprus Plc would take over the viable assets of the failed bank along with 9 billion euros in central bank-provided emergency liquidity aid, according to three EU officials who asked not to be named because talks are ongoing.
Deposits below the EU deposit-guarantee ceiling of 100,000 euros will be protected, and a loss of no more than 40 percent will be imposed on uninsured depositors at the Bank of Cyprus, two EU officials said. Uninsured depositors at Cyprus Popular would largely be wiped out, two other officials said.
(Full article at the link)
Much more and with appropriate sarcasm at Zero Hedge (who still shows me ANA's horrendous "maid" with contact-lens-augmented blank eyes).
I wonder how Cyprus residents react to this wonderful news. Since most of their savings are guaranteed (under 100,000 euro) and it will be mostly Russians who will get wiped out, will they breathe a sigh of relief?
Or will some of them recall what one Nazi camp survivor said long time ago?