Cyprus

ECB to provide liguidity to to Cypriot banks

by fm

20th March 2013

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1 min read

The European Central Bank said on Tuesday 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, according to Reuters.

It adds that "the ECB reaffirms its commitment to provide liquidity as needed within the existing rules".

The Cypriot House plenary rejected Tuesday a draft bill on Cyprus` bailout agreement that provided for an unprecedented levy to be imposed on savings in Cyprus banks (haircut) with 36 votes against and 19 abstentions.