BERLIN (MNI) – The so-called troika of the European Commission, the
ECB and the IMF wants to make the creditors and shareholders of Cyprus’
troubled banks contribute to the planned rescue measures, German weekly
Der Spiegel reported over the weekend, citing a draft of a memorandum of
understanding between the troika and the Cypriot government.

According to the magazine, the MoU stipulates that “bank owners and
creditors with subordinate claims must take losses before public aid is

This means that creditors of Cypriot banks cannot simply withdraw
their money. Rather, their claims will be transformed into bank shares,
Der Spiegel wrote. Overall, Cyprus needs at least E17.5 billion in aid,
the magazine said.

–Berlin bureau: +49-30-22 62 05 80; email:

[TOPICS: M$X$$$,MGX$$$,M$$CR$,M$Y$$$]