Cyprus Finance Minister: Depositors Could Face 80% Loss in Savings

People queue up to make a transaction at an ATM machine outside a closed Cyprus Popular Bank (CPB) branch in Athens March 22, 2013. (REUTERS/John Kolesidis)

Cyprus Finance Minister Michalis Sarris said today that depositers at Cyprus Popular Bank PCL could face losses of as much as 80% on their deposits.
FOX Business reported:

Cyprus’s finance minister said Tuesday that large deposit holders at Cyprus Popular Bank PCL (CPB.CP), the island’s second biggest lender, could face losses of as much as 80% on their deposits as the government moves to wind down its operations.

Speaking in a television interview with state broadcaster RIC, Michalis Sarris indicated that it could also take years before those depositors see any of their money returned.

“Realistically, very little will be returned,” Mr. Sarris said.

Asked if, like in other bank closures, it could take six to seven years before depositors get back there money, he said: “maybe yes. And the amount [returned], could be 20% . Certainly, for depositors above 100,000 euros it could be a very significant blow.”

Hat Tip Charles

But don’t worry, this could never happen here in America.

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