Dijsselbloem back-tracks, but bail-in looms large

26 Mar 2013

The reality of bail-in was brought home to senior unsecured investors by comments by Eurogroup president Jeroen Dijsselbloem on Monday that Cyprus’s bail-out should serve as a template for other eurozone bank bail-outs.

Senior bondholders in Cyprus’s second largest lender, Laiki Bank, were bailed in as part of the country’s banking sector bail-out, agreed on Monday.

Dijsselbloem appeared to back-track on Monday afternoon by saying Cyprus was “a specific case with exceptional challenges”. But the damage had been done: the ...

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