Even the best-protected senior bondholders investing in Laiki Bank would see their holdings \”wiped out\”, Mr Dijsselbloem said.
\”Laiki bank will have to be resolved so yes, senior bond holders, along with the others, will basically be wiped out there,\” he said.
He said the Bank of Cyprus, the island\’s largest bank, needs to be recapitalised. \”The contribution to this recapitalisation must come, inevitably, from senior bondholders, junior bondholders, shareholders and, to some extent, we don\’t know to what extent yet, also from uninsured depositors,\” Mr Dijsselbloem said.
Quite. It\’s the normal bankruptcy procedure for a bank and there was absolutely no reason at all that they shouldn\’t have proposed/done this a week ago. Or a month ago, come to that.