UK customers to escape Cyprus levy
AROUND 15,000 savers in the UK arm of stricken Cypriot bank Laiki will see their deposits protected under British rules and will escape the Cyprus banking levy, it was announced today.
The Bank of England’s new City watchdog, the Prudential Regulation Authority (PRA), said around £270m in deposits from Laiki Bank UK had been transferred to Bank of Cyprus UK and would come under the UK compensation scheme, guaranteeing up to £85,000 per saver.
Customers, including those with current accounts in credit, will not be hit by any Cypriot levy on their accounts - potentially as high as 60 per cent for large depositors - after the transfer and will be able to access their accounts as normal.
But customers with overdrafts will remain at Laiki, also known as Cyprus Popular Bank, and will see their accounts frozen.