Cyprus Mail
Cyprus

House passes remaining bank and investment bills

THE House plenum on Thursday passed the four remaining bills regulating the failure of banks and investment firms.

The legislation – which is not retroactive – harmonises with the European Union’s Bank Recovery and Resolution Directive (BRRD).

The bills exempt provident funds from bank bail-ins. This applies to insured deposits – up to €100,000 – per account in a provident fund.

Covered by the legislation are small and medium sized businesses, defined as businesses with up to 250 employees, a turnover of up to €50 million or an annual budget of €43 million.

According to MPs, this accounts for 99 per cent of provident funds. The remaining 1 per cent concerns provident funds of large organisations, such as the Cyprus Telecommunications Authority.

Where a financial institution is placed under resolution, and a bail-is imposed on creditors, the cash raised will come in this order: shareholders, bondholders, uninsured depositors.

The bills passed by 31 votes for and 20 against. AKEL and the Greens voted against.

The House also approved the accompanying government regulations.

 


Related posts

Akel appeal to put environment above profit

Gina Agapiou

Shocking images of dead flamingos probably a result of lead poisoning

Peter Michael

Foreign ministry offers condolences after deadly Turkish earthquake

The wines of the Peloponnese at festival

Eleni Philippou

State institutions continue to squabble

Jonathan Shkurko

Cyprus accused of blocking new EU sanctions against Russia amid Turkey spat

Reuters News Service

8 comments

Comments are closed.