So where you suggest people should keep their money if the only insurance they can get for their deposit is Euro 100k ? Matresses? Safes?

Bailout or no bailout, all money in Laikie is lost except what was insured.

Some interesting points 1) Laikie bank also had a loan of 9 Billion from ECB, that won't be written off , even though depositor's money is written off. That loan will be transferred to Bank of Cyprus. 2) Out of this 9 Billion half was used by Greek branches which are not effected as sold to a greek bank, even then Bank of Cyprus will have to pay full 9 Billion. 3) If you had a mortgage with same bank for 300k , and had 300k Deposit, only Deposit will be reduced to 100k , but you will still owe the bank 300k loan, as they are transferring all good loans to Bank of Cyprus.

I can go on with more points to prove that its unfair politics just to give a message to Rich Russians to send their money to Germany instead of keeping it in Cyprus.

After the crisis, German banks are trying to put full page Ads in Cypriot newspapers both in English and Russian saying that their money will be safer in Germany!!!

The same thing is the case here in the US. FDIC insures up to 250k. After that you are liable to lose it if the bank goes tits up.

In this case, the bank went tits up, he got his 100k EUR back from insurance.

As for mortgages and loans, those aren't insured to the bank either (unless underwritten by the gov't ...), so if YOU go bankrupt the bank is out that money. In most cases you have some equity backing that loan so even if you go bankrupt some part of the money can be recovered by for example selling your house.

€100,000 was insured. If you want to go along that line of thinking, then he currently has access to less than 4% of the uninsured money.

As far as I understood , no part of uninsured money will be left for him.

Insurance is for Euro 100k, and he has a Dollar Account, that is why he will get only $128k based on the exchange rate.

The funds are currently marked as frozen. I presume that they're still figuring out the exact percentage for the haircut, so the only assets he can use is anything up to the insured amount.

No the decision has been already made, Laikie is being dissolved, so there won't be any haircut. You will get only Euro 100k

http://www.cyprus-mail.com/cyprus/details-euimf-bailout- agreement-cyprus/20130325

"Laiki will be resolved immediately - with full contribution of equity shareholders, bond holders and uninsured depositors - based on a decision by the Central Bank of Cyprus, using the newly adopted Bank Resolution Framework."