Haircut

a percentage subtraction from the market value of an asset, typically on a large scale, enforced by a powerful institution or authority in response to debt/liabilities incurred by the asset owners/investors, producing an effective devaluation of the asset. The ‘haircut’ term became a more general description for a tax or levy imposed on ordinary savings accounts with reference to the EU-imposed tax on Cyprus bank deposits in 2013, although the underpinning principle/cause was consistent with the technical meaning of the term.