Nowotny says ECB ready to give liquidity to Cyprus banks

The European Central Bank will provide liquidity to banks in Cyprus when they reopen, ECB Governing Council member Ewald Nowotny was quoted as saying on Tuesday.
"No decisions have been taken so far because we don't know the final results of the discussions in Cyprus, but given the present legal background, the ECB will be prepared to fulfil this task of a lender of last resort," Nowotny told Dow Jones in an interview.
Nowotny also said that there was "still an open perspective" on including bondholders of Cypriot banks in the financial rescue of the debt-ridden island, but added "the legal and technical problems are much higher" than in taxing depositors according to current plans.
The ECB said after Cypriot lawmakers overwhelmingly rejected a key element of a proposed bailout that it was in contact with its IMF and EU partners and remained committed to providing liquidity within certain limits.
"The ECB takes note of the decision of the Cypriot parliament and is in contact with its troika partners," the bank said in a statement. "The ECB reaffirms its commitment to provide liquidity as needed within the existing rules.