Cyprus’ bank and economic crisis has led to the firing of Bank of Cyprus chief Yiannis Kypri who is being replaced by a special administrator to run the bank during its restructuring as part of a deal with international lenders to get a 10 billion euros ($13 billion) rescue package to keep the economy from collapsing.
The bank’s Chairman, Andreas Artemis, submitted his resignation on March 26. An official at the bank, who declined to be named, said local media reports that Kypri had been removed from the post were “valid” although was unable to confirm another that the central bank had demanded the resignation of the entire board.
Under the deal, Cyprus had to come up with 5.8 billion euros ($7.5 billion) and said it would do so by seizing the money of people who weren’t responsible for the crisis caused by the mismanagement of bankers who were not held accountable.
Deposits over 100,000 euros ($130,000) that aren’t insured against loss will be frozen and used to resolve the debt of Laiki Bank, that will close, and recapitalize the Bank of Cyprus through a deposit/equity conversion. Laiki Bank deposits below 100,000 euros were shifted to the Bank of Cyprus to create a so-called good bank.