Cyprus banking crisis
2013-03-25
The 3/25 agreement included resolution of Laiki and conversion of some unprotected deposits into equity.
Conditions at the time
Imbalances in Cyprus’s financial sector and the costs of bank reconstruction were central to international support negotiations.
How events unfolded
The 3/25 agreement included resolution of Laiki and conversion of some unprotected deposits into equity.
Stakeholders and impacts
Bank shareholders, creditors, depositors, Cypriot authorities and the Eurogroup shared the loss burden.
Information available at the time
The agreement aimed to preserve protected deposits of up to 10 ten-thousand euros while restructuring the financial sector.
Findings confirmed later
The Central Bank of Cyprus explained the internal loss-bearing structure apart from government funding.
Alternative interpretations and limitations
Describing this as uniform confiscation of all deposits would be inaccurate. Protected versus unprotected deposits and differences in bank-specific treatment matter.
Source-based context and interpretation
After the agreement, Cyprus's central bank described transfer of Laiki's insured deposits and business to Bank of Cyprus, with uninsured deposits treated separately. For Bank of Cyprus, partial conversion into equity differed from temporary freezing. Agreement terms and operational implementation were not identical. ASSETCASTING interpretation: Maintaining banking services is different from preventing every creditor loss. Separate deposit insurance, loss allocation and temporary access restrictions instead of calling all deposits either confiscated or protected. Subsequent decrees could modify these initial arrangements.
Evidence coverage through 2013-03-30 · Sources checked 2026-10-14
Related events and periods1
- Financial-crisis response and unconventional monetary policy
An event or period whose recorded start falls within this editorial interval. This does not establish that it caused or represents the characteristics of the era, nor guarantee that the entire period falls within the interval.
Historical events do not guarantee future recurrence or investment performance.