Bank of Cyprus: Next Move - Salvation or Destruction
World | March 22, 2013, Friday| 534 views
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Banks in Cyprus are to stay closed until next Tuesday. Photo by EPA/BGNES
The Bank of Cyprus has warned the country is hanging between salvation and destruction as MPs are desperately struggling to raise the funds the country needs to secure an international bailout.
"The next move may prove its salvation or destruction," warned the Bank of Cyprus, the country's largest - itself said to require urgent funding to prevent collapse.
It said the Cypriot economy was "on the brink".
MPs in Cyprus are about to start voting on a series of bills that aim to raise the funds the country needs to secure an international bailout.
The country has to find the money until Monday, the deadline set by the European Central Bank.
If it does not, liquidity to the country's banks could be cut off and they could collapse.
Many Cypriots express fears they are set to lose their savings, and there have been long queues at cash machines.
Parliamentarians flatly rejected a plan to tax bank deposits earlier this week.
They need to find EUR 5.8 B to qualify for a EUR 10 B bailout loan from the EU and International Monetary Fund (IMF).
Tags: banks, state investment fund, fund, bailout, Cyprus, European Central Bank, EU, International Monetary Fund, IMF
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