Cyprus: Developments Following Eurogroup Meeting

Update 20 March 2013 - Further to our briefing below kindly note that the draft bill for haircut on deposits was rejected by the House of Representatives and that the Government of Cyprus has announced that banks will not reopen before Tuesday, 26 March. Harneys is monitoring the developments. We have published a further comment on legal impacts of the present situation and will host a live webinar on developments on Monday 25 March at 11 a.m. GMT. Click here for more information.
On 15 March 2013 the representatives of the Republic of Cyprus met with other members of the Eurogroup, the informal body comprising the finance ministers of the 17 member states of the eurozone, to reach an initial agreement for the sovereign bail out of Cyprus.  The preliminary compromise, pending approval by Parliament in Cyprus, includes the following terms: