Yale says its endowment lost 25 percent since June

BOSTON, Dec 16 (Reuters) - Yale University's endowment has lost 25 percent, or $5.5 billion, in four months, becoming the latest wealthy university to say how much of a bite the current financial crisis has taken out of its finances.

Yale President Richard Levin wrote to the school's faculty and staff on Tuesday, warning them the decline would force budget cuts in coming academic years.

"Our best estimate of the endowment's value today is $17 billion, a decline of 25 percent since June 30, 2008," Levin wrote, adding: "This is the value we are using for purposes of budget planning."

He said the school would need to reduce all wages and non- salary expenses such as travel and consultants' fees by 5 percent for 2009-2010, and by another 5 percent the following year.