Cyprus parliamentarians back solidarity fund
March 23 , 2013
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.