Cypriot lender Bank of Cyprus on Sunday converted 37.5pc of uninsured deposits to equity as part of the island's €10bn (£8.4bn) rescue deal. 

The so-called 'bail-in' forces savers to foot the bill for the recapitalisation of Cyprus' biggest bank, after it was hit by massive losses from its exposure to debt-crippled Greece.

Bank of Cyprus said it had converted 37.5pc of deposits exceeding €100,000 into "class A" shares, with an additional 22.5pc held as a buffer for possible conversion in the future.

Another 30pc would be temporarily frozen and held as deposits, the bank said.

The bail-in is part of attempts by Cyprus to find €13bn - a figure nearly double the island's original bill - to shore up its economy. Other measures include a possible sell-off of the nation's gold reserves.

The European Union and the International Monetary Fund are providing a further €10bn to the island, one of the eurozone's smallest economies.

However the disbursement of rescue funds - expected to start in May - will hinge on the outcome of a vote in the Cypriot parliament, due on Tuesday. 
http://www.telegraph.co.uk/finance/financialcrisis/10024209/Bank-of-Cyprus-executes-depositor-bail-in.html

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