Gold Magazine November - December 2013, Issue 32 | Page 75

enough in my view, but it’s a start.
Gold: When the Eurogroup took its decision to impose a haircut on uninsured
deposits, it was loudly stated that Cyprus was a ‘unique case’ and not a model
for the future. How true do you think
that is?
H-J. D.: Let us first understand why
Cyprus got into this situation. Next to
the flight of depositors there was a flight
of subordinated bond investors from the
banks. Bank of Cyprus bought back subordinated debt years after Deutsche Bank
had stopped the practice, in May 2011
when the Greek haircut debate was in full
swing. Laiki then did a frankly disingenuous deal in June 2012, paying out a lot
both in cash and senior unsecured bonds
to