Fixed-term deposits likely to face haircuts
A gap in coverage means that some deposits will be hit, writes Eddie Hobbs.
Losses on certain IBRC fixed-interest deposit accounts are likely, the scale of which will become clear once the liquidator's report is published, marking the former nationalised bank as the first bank in the eurozone to apply haircuts to deposits.
The losses arise as a consequence of the liquidation of IBRC, and result from a gap in the coverage of fixed-term contracts that predates the introduction of the Eligible Liability Guarantee (ELG) scheme - to which...
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