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Cyprus parliamentarians back solidarity fund

  • Cyprus’ parliament approved a "national solidarity fund" on Friday in an effort to ease a banking crisis that has rattled markets on both sides of the Atlantic.

    Parliamentarians also imposed capital controls to prevent a run on the Mediterranean island nation’s ailing banks.

    The move comes as the first of a series of laws intended to raise the $7.5 billion required in order to qualify for a $13 billion bailout offered by the European Union and the International Monetary Fund.

    MPs are yet to decide whether to impose a levy on large bank deposits.

    On Tuesday, parliament rejected a levy on all deposits to raise the funds.

    The European Central Bank has given Cyprus until Monday to find a solution, or it will cut off liquidity to Cypriot banks.