Cyprus May Launch Special Fund to Qualify for Bailout
World | March 21, 2013, Thursday| 465 views
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Banks in Cyprus will remain shut until Tuesday to prevent mass withdrawals. Photo by EPA/BGNES
Cyprus plans to launch a state investment fund to raise billions of euros required to qualify for a EUR 10 B international bailout.
The new package of measures is still under discussion to reach a target of EUR 5.8 B demanded by the EU and IMF, and may include a revised bank levy.
BBC has cited correspondents as saying that the new plan may include nationalising pension funds of semi-public companies and limiting the bank levy to deposits above 100,000 euros.
Political leaders discussed the options with President Nicos Anastasiades on Thursday, and the package is expected to be studied by the government shortly.
The European Central Bank (ECB) said in a statement Thursday it would continue to provide emergency financing to Cypriot banks until Monday. After that, such assistance could be discussed only if a program of EU-IMF is in place to guarantee the stability of these banks.
Banks in Cyprus are to stay closed until next Tuesday.
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