Cyprus Bail-Out

27 March 2013
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Key takeaways 

  • The developing Cyprus bail-out package imposes significant losses on large depositors at the Laiki Bank and the Bank of Cyprus. 
  • The package raises concerns at international law under a number of bilateral investment treaties to which Cyprus is party. 
  • The control of capital movements is a new and concerning development in the Eurozone crisis and will need to be compatible with the Treaty on the Functioning of the European Union.