Cyprus known as Laiki Bank), into a "bad" bank which would be wound down over time and a "good" bank which would be absorbed by the Bank of Cyprus. In return for a €10 billion bailout from the European Commission, the European Central Bank and the International Monetary Fund, often referred to as the "troika", the Cypriot government was required to impose a significant haircut on uninsured deposits, a large proportion of which were held by wealthy Russians who used Cyprus as a tax haven. Insured deposits of €100,000 or less were not affected. According to the 2017 International Monetary Fund
Report on a National Bank not exceed $10 million (exclusive of deposits), and to assure compliance with government rules of incorporation. Certificates of indebtedness – i.e. government war time debt – had been paid with government securities at face value plus arrears of interest under the terms of Hamilton’s First Report on the Public Credit. The new securities were accepted by the Bank to purchase its stock, up to three-quarters (75%) of the value. Based on the collateral of these securities, new Bank notes were issued, producing a dramatic increase in the money supply and serving as the principal circulating medium – the “legal tender”