European Central Bank Threatens to Cut-Off Crucial Funding to Banks in Cyprus on Monday

by Colonel on March 21, 2013

“As the European Central Bank threatened to shut off crucial financing for banks in Cyprus without a rapid accord on an international bailout, members of Parliament put off a vote on Thursday on yet another revamped formula. The vote was rescheduled for Friday.

The central bank said the new package included “consolidation measures” to enable Cyprus Popular Bank, also known as Laiki Bank, to continue operating.

Lawmakers will also vote on restrictions on taking cash out of banks and out of the country, known as capital controls, when the banks reopen.

The central bank said on Thursday that Cyprus had until Monday to reach an agreement with the European Union and the International Monetary Fund if the government wanted its banks to continue to receive the low-interest loans essential to keeping them afloat.

” — Liz Alderman, Copyright 2013 The New York Times Company

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