Cyprus Given Monday Deadline
European Central Bank says its emergency funding will expire then
By Matt Cantor, Newser User
Posted Mar 21, 2013 3:17 AM CDT
Updated Mar 21, 2013 7:45 AM CDT
A woman solves a crossword as she sits on bench outside a Bank of Cyprus building in Nicosia, Cyprus, Wednesday, March 20, 2013.   (AP Photo/Petros Giannakouris)

(Newser) – As Cyprus works on a "plan B" today to fund a bailout, the European Central Bank says its emergency assistance will expire Monday, so there had better be a deal in place, the Wall Street Journal notes. That could be possible: The head of the country's central bank says he expects a "program of support" to be ready by Monday. He hasn't given details, but the country's finance minister today cited "a lot of teams working on number of issues—banks, natural gas, and other opportunities—with which we can base some cooperation and some support from Russia."

Cypriot banks are set to remain closed until Tuesday. The AP and BBC have likely "plan B" details:

  • The country's top lenders could be restructured, with the government taking over bad assets while good assets get sold off.
  • A bank levy on deposits over $130,000 remains a possibility, according to local reports.
  • Money could come from pension funds and foreign banks' Cyprus subsidiaries.
  • Another possible source of help: Cyprus' Orthodox Church. It has offered to mortgage assets—it holds a large portion of a major bank—and invest in government bonds. "The wealth of the church is at the disposal of the country," says Archbishop Chrysostomos II.

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Mar 21, 2013 9:23 PM CDT
Could someone give a short summary of this situation? Who exactly needs this bailout? Their government? Who do they own the money to? Are their banks state operated? I'm sorry for not looking into it myself, I'm just not interested enough to spend the time digging into what seems like a complicated situation.
Mar 21, 2013 11:26 AM CDT
Talk about having your teet in a ringer. Wake up Americans that is where we are headed if we can't get this debt thing fixed. Other nations will be dictating policy to us because we owe them so much money. I heard a news report that their banks may never open again. A british citizen working in Cyprus was interviewed on the BBC this morning she said that she can't get cash out of and ATM because they are empty and can't even cash her paycheck. Just think what would happen to you if you had no access to your money they have also shut down on-line banking feature in Cyprus. This country is locked down and in limbo. Just look what progressive policies do to a society they are financial suicide.
Mar 21, 2013 9:29 AM CDT
A plan that doesn't jail the politicians and state leaders is a slap in the face to its' citizens. The pols let this happen and are in collusion with the banks and corporations. Those with money in Cypriot banks should be taking to the streets and burn baby, burn. Up in smoke would be my answer to the pols.