Big savers at Bank of Cyprus could lose up to 60 per cent of savings

NICOSIA, Cyprus (AP) - A Central Bank official and a senior Finance Ministry technocrat say that Bank of Cyprus savers with over 100,000 euros (S$159,040) could take losses of up to 60 per cent.

The officials, who spoke on condition of anonymity because they're not authorised to publicly discuss details of the issue, said on Saturday that deposits over 100,000 euros at the country's largest lender will lose 37.5 per cent of their value after being converted into bank shares.

They said the savers could lose up to 22.5 per cent more, depending on an assessment by officials who will determine the exact figure aimed at restoring the troubled bank back to health.

Cyprus agreed on Monday to make depositors contribute to a financial rescue in order to secure 10 billion euros in loans from the euro zone and the International Monetary Fund.