Cyprus: Votes on Mandatory Levy

Politics ♦ Published: March 23, 2013; 20:01 ♦ (Vindobona)

In case the government will not come to conclusion how to generate the required money (€ 5.8bn), the ECB will cut off the money supply for Cyprus’ ramshackle banks.

Cyprus: Votes on Mandatory Levy / Picture: © Bank of Cyprus

On Friday the Cyprian parliament has agreed on a capital restriction and the establishing of a solidary fund which is supposed to be used for recapitalizing national banks. Also the plan to split one of the major banks, Popular Bank (Laiki Bank), into a regular banking institute and a so-called bad bank has been approved. Further agreements will have to be voted on in the next few days.…