Crucial Cyprus bailout package vote looms

With the health of the euro zone at stake, Cyprus lawmakers have been under pressure from the European Central Bank

Topics: GlobalPost, Cyprus, Euro Zone, European Union, Europe, ,

Crucial Cyprus bailout package vote loomsProtesters line on the ground in front of riot police in Nicosia, Cyprus. (Credit: AP/Petros Karadjias)
This article originally appeared on GlobalPost.

Global Post Cyprus lawmakers are preparing to vote on a new bailout on Friday as more pressure descends on them from the European Central Bank.

The government is urging parliament to approve a deal that would avert a bankruptcy that would almost certainly prompt Cyprus’s exit from the euro zone.

“The next few hours will determine the future of the country,” government spokesman Christos Stylianides said before the parliamentary debate. “We must all assume our share of the responsibility.”

The ECB is pushing Cyprus to reach a deal quickly or risk Cypriot banks losing their financing. Without the government’s approval for new measures, the country would lose the $13 billion bailout it previously requested and would risk a disorderly default.

Several hundred protesters gathered outside the Parliament building on Friday morning, angrily demanding compensation for their losses at banks.

“Cypriot authorities have three things to do before Tuesday: Present a credible and viable plan B to replace the rescue rejected by parliament, install long-term controls on capital placed in the banks, and prepare to merge the two main banks in trouble,” a senior European Union source told Agence France-Presse, adding that if those steps were not taken, a risk of Cyprus having to leave the euro zone would arise.



Finance ministers from the 17 countries in the euro zone are considering a plan that would close the two largest banks in Cyprus and freeze assets of uninsured depositors.

Cyprus Popular Bank (CPB) and the Bank of Cyprus would split and create a “bad bank,” moving insured deposits to a “good bank” without sustaining any losses. Uninsured deposits would be placed in the bad bank and be frozen until assets were sold.

Russia turned down Cypriot requests for financial aid on Friday.

More Related Stories

Featured Slide Shows

  • Share on Twitter
  • Share on Facebook
  • 1 of 13
  • Close
  • Fullscreen
  • Thumbnails
    Clare Barboza/Bloomsbury

    Uncommon Apples

    Api Étoile

    Like little stars.

    Clare Barboza/Bloomsbury

    Uncommon Apples

    Calville Blanc

    World's best pie apple. Essential for Tarte Tatin. Has five prominent ribs.

    Clare Barboza/Bloomsbury

    Uncommon Apples

    Chenango Strawberry

    So pretty. So early. So ephemeral. Tastes like strawberry candy (slightly).

    Clare Barboza/Bloomsbury

    Uncommon Apples

    Chestnut Crab

    My personal fave. Ultra-crisp. Graham cracker flavor. Should be famous. Isn't.

    Clare Barboza/Bloomsbury

    Uncommon Apples

    D'Arcy Spice

    High flavored with notes of blood orange and allspice. Very rare.

    Clare Barboza/Bloomsbury

    Uncommon Apples

    Esopus Spitzenberg

    Jefferson's favorite. The best all-purpose American apple.

    Clare Barboza/Bloomsbury

    Uncommon Apples

    Granite Beauty

    New Hampshire's native son has a grizzled appearance and a strangely addictive curry flavor. Very, very rare.

    Clare Barboza/Bloomsbury

    Uncommon Apples

    Hewes Crab

    Makes the best hard cider in America. Soon to be famous.

    Clare Barboza/Bloomsbury

    Uncommon Apples

    Hidden Rose

    Freak seedling found in an Oregon field in the '60s has pink flesh and a fragrant strawberry snap. Makes a killer rose cider.

    Clare Barboza/Bloomsbury

    Uncommon Apples

    Knobbed Russet

    Freak city.

    Clare Barboza/Bloomsbury

    Uncommon Apples

    Newtown Pippin

    Ben Franklin's favorite. Queen Victoria's favorite. Only apple native to NYC.

    Clare Barboza/Bloomsbury

    Uncommon Apples

    Pitmaston Pineapple

    Really does taste like pineapple.

  • Recent Slide Shows

Comments

0 Comments

Comment Preview

Your name will appear as username ( settings | log out )

You may use these HTML tags and attributes: <a href=""> <b> <em> <strong> <i> <blockquote>