Cyprus passes bills for EU bailout; Greece to take over bank branchesSubmitted by celeste on Sat, 03/23/2013 - 07:12
Greece Bailing out Cyprus ???
Lawmakers in Cyprus approved three bills late Friday aimed at securing a bailout for its troubled banks from the European Union and averting a financial meltdown.
The legislation includes one bill that allows the government to divide the wobbling lenders into good and bad banks -- a law that would likely to be applied first to Cyprus Popular Bank. The goal is to restructure without hurting small depositors.
A second law puts in place restrictions on financial transactions in times of crisis and a third sets up a "solidarity fund."
The country is expected to adopt more legislation in an effort to raise the 5.8 billion euros Cyprus needs to get an EU bailout.
Among the other bills being brought forward is one that imposes a tax of less than 1 percent on all bank deposits, Averof Neophytou, deputy head of the governing DISY party told The Associated Press.