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ARTICLE · 16 APRIL 2013

Q&A On Cyprus' New Banking Laws

Harneys
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A number of answers to frequently asked questions about banking in Cyprus in the context of the current banking crisis.

CyprusFinance and Banking
Pavlos Aristodemou
Pavlos Aristodemou
Nancy Erotocritou
Nancy Erotocritou
Margarita Hadjitofi
Margarita Hadjitofi
Emily Yiolitis
Emily Yiolitis
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28 March 2013 - Below are answers to frequently asked questions about banking in Cyprus in the context of the current banking crisis.

Q.    Under what circumstances is the Deposit Protection Scheme activated?

A.    The Deposit Protection Scheme (DPS) is activated, inter alia, where:
 

(i)    The Central Bank of Cyprus (CBC) concludes that a particular member-bank is unable to repay its deposits for reasons relating to its financial position and it is foreseen that the bank will not be able to do so in the near future, or
(ii)    An order has been issued by a Court of the Republic of Cyprus for the liquidation of the particular bank, pursuant to the Companies Law


Q.    What is the maximum amount of coverage for each depositor?

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