Thursday, March 21, 2013

Cyprus Update

by Calculated Risk on 3/21/2013 04:06:00 PM

A few articles on Cyprus:

First, the deadline from the ECB: Governing Council decision on Emergency Liquidity Assistance requested by the Central Bank of Cyprus

The Governing Council of the European Central Bank decided to maintain the current level of Emergency Liquidity Assistance (ELA) until Monday, 25 March 2013.

Thereafter, Emergency Liquidity Assistance (ELA) could only be considered if an EU/IMF programme is in place that would ensure the solvency of the concerned banks.
From the Financial Times: Cyprus targets big depositors in bank plan
Cyprus announced plans on Thursday to overhaul the island’s banking industry, including forcing big depositors to accept losses on their accounts ... “The banking system needs restructuring otherwise it will go bankrupt and it needs to be done immediately,” said Panicos Demetriades, governor of the Central Bank of Cyprus. Deposits up to €100,000 would be guaranteed and bank jobs would be safeguarded, he added.
Excerpt with permission
From Alphaville: Taxi for Laiki

And live updates from the Telegraph: Cyprus bail-out: live