Saturday, March 23, 2013

Cyprus Bailout: MPs Stumble Towards Deal

The Cypriot parliament has approved a number of measures designed to restructure the economy and raise funds in order to secure an EU bailout.

MPs voted in favour of a "national solidarity fund" - which would nationalise pension funds, with bonds issued against future natural gas revenues - and capital controls to prevent a run on the island's troubled banks.

They also backed legislation to permit the restructuring of troubled banks to prevent their collapse.

The first of the package of measures were agreed shortly after it emerged Cyprus was reportedly considering a levy of 15% on all bank deposits over 100,000 euros as its attempt to secure a rescue for the economy.