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Cypriot Depositors Hit Hard Too, Not Only Rich Russians

World | March 30, 2013, Saturday // 19:11

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Bulgaria: Cypriot Depositors Hit Hard Too, Not Only Rich Russians

A one-off tax on all customers of Cypriot banks, starting at 6.75% for the smallest deposits, led to mass protests across Cyprus, and the deal was later voted down by the country's parliament. Photo by Getty Images

Plenty of Cypriot depositors, not just wealthy Russians, will be hard hit - even more so now than previously thought – by the painful Bank of Cyprus haircut announced on Saturday, correspondents in Nicosia said.

Mark Lowen from BBC News, Athens, told the story of the Junior and Senior School of Nicosia, which he visited while in Cyprus.

The school teaches the British system to 900 children.

"School fees are paid into Laiki Bank, taking its deposits well over 100,000 euros. With huge losses, it will now struggle to pay staff salaries," the correspondent said.

"The Bank of Cyprus holds about a third of all deposits in Cyprus. An enforced loss of up to 60% will have a dramatic impact," he warned.

Those who recently invested proceeds from house sales will also suffer.

According to unconfirmed reports one university put a EUR 6 M EU grant in its account.

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