RT.COM: Cyprus was left face to face with its grave financial crisis and is due to adopt new emergency legislation to secure the EU bailout after Russia said it would not help.
Nicosia introduced emergency legislation in the parliament late on Thursday to secure a bailout deal with international creditors as the island state faces an ultimatum from the ECB to agree on the bailout by next week.
The parliament is to debate on the emergency legislation on Friday, as MPs say they needed time to consider the new legislation.
The bills presented include plans to recapitalize its banking sector, eight times the size of Cyprus’ €17 billion economy, and lay losses on big depositors. The finance minister and Cyprus Central Bank are granted emergency powers to introduce any restrictive measures on banking activities to stop money flooding out of the Cypriot banks when they reopen next week after 10 days’ holiday.
Cyprus Central Bank governor Panicos Demetriades told reporters Thursday that “the banking system needs restructuring otherwise it will go bankrupt and it needs to be done immediately.” » | Friday, March 21, 2013
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