EU running out of patience with Cyprus

Rick Moran
The European Central Bank has delivered an ultimatum to the government of Cyprus; fix your debt problem by Monday or your banks will become insolvent. Reuters: The ultimatum came as the island's leaders struggled over a "Plan B" to try to raise 5.8 billion euros demanded by the EU under a 10 billion euro ($13 billion) rescue, after angry lawmakers threw out a tax on deposits as "bank robbery". The government said party leaders had agreed to create a "solidarity fund" that would bundle state assets as the basis for an emergency bond issue, but parliament speaker Yiannakis Omirou insisted a revised levy on larger bank deposits, many of them held by Russians, was not on the table. The European Central Bank, which has kept Cyprus's banks operating with a liquidity lifeline, said the government had until Monday to get a deal in place, or funds would be cut off. "Thereafter, Emergency Liquidity Assistance (ELA) could only be considered if an EU/IMF program is in place that...(Read Full Post)

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