Savers with the Bank of Cyprus could be given shares in the bank, a source close to the negotiations has told the news agency Reuters.
Under the current proposals depositors with more than €100,000 in the bank would:
- Be given shares in the bank worth 37.5% of their original deposit, the bank would use this money to improve its financial position.
- Approximately 22.5% of the remainder of their saving would earn no interest.
- The remaining 40% would continue to earn interest but it would only be paid if the bank started performing well.
- Therefore if the bank continued to perform badly, 62.5% of the savers original deposits would not be earning any interest.
Reuters reports that depositors would have no guarantee that any of money over the 37.5% of shares offered, would actually be paid back to savers if the bank collapsed.
More top news
Finally feeling a tad warmer in the next couple of days - temperatures will be up a few degrees on the last few days.
A Fifa whisleblower has described Sepp Blatter as a 'diabolical genius' - but said Russia and Qatar should keep their World Cups.
12-year-old Abdulsamad ended his perilous journey from Syria behind bars in Greece - where he hopes he can build a new life away from war.