INSURANCE companies yesterday sought to downplay the possible impact on policy holders as a result of the deposits haircut.
Under a decree issued by the Central Bank, insurance companies are no longer exempt from a deposit haircut at the Bank of Cyprus (BoC) and the old Laiki.
Authorities had initially excluded various entities from the write-down but were forced to rethink after it became obvious that it would increase the losses on depositors who must chip in to recapitalise stricken BoC.
Several previously exempted categories will now incur a 27.5 per cent loss on their deposits over €100,000.
These include charities licensed by the finance ministry, and private schools registered with the education ministry.Read More