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Cyprus savers sue European Central Bank and European Commission

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Cyprus savers sue European Central Bank and European Commission

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Bank depositors in Cyprus have sued the European Central Bank and the European Commission.

The savers filed four lawsuits demanding compensation after they suffered forced losses on deposits as part of last year’s rescue package for the crisis-hit Mediterranean nation.

European governments and the International Monetary Fund agreed to loan Cyprus 10 billion euros as long as the country liquidated its second largest bank and forced losses on bondholders and holders of bank accounts containing deposits of more than 100,000 euros.

The concessions were demanded by authorities in a bid to shrink the country’s banking industry.

The savers say they do not know how much money they lost in the so-called haircuts on their deposits.

The ECB and commission declined to comment because the cases are ongoing.