Bill Ready to Guarantee Bank Deposits up to €100,000 in Cyprus

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Guaranteeing bank deposits up to €100,000 in Cyprus is hoped to come into effect soon as a government bill will be put before Cyprus Parliament over the coming weeks.
 

Last October EU Finance Ministers decided that bank deposits up to €50,000 would be guaranteed for one year. However, Cyprus Finance Minister, Charilaos Stavrakis at that time confirmed that Cyprus would look to protect deposits up to €100,000.

 
Providing the bill gets the go ahead, it will guarantee bank deposits up to €100,000 for every account held in any currency per bank. It would make good sense for depositors to 'spread' their savings across separate accounts and banks if savings exceed €100,000.
 
Also, local banking practices are being brought in to touch with the relevant EU directives. If a bank collapses, it must refund depositors within 20 days as opposed to the current practice of within three months.

 
It is not clear as to how long the bank deposit guarantee bill will be effective for - it may only last for a certain period whilst the economy recovers.

Currently, Cyprus commercial banks and Cooperatives guarantee depositors' cash up to €20,000.