Cyprus bailout: Banks to stay shut until Thursday

Cyprus bailout: Banks to stay shut until Thursday Zeebiz Bureau

New Delhi: Cypriot banks will remain closed until Thursday, the central bank now says, and temporary measures will be placed on transactions when they reopen despite an EU/IMF bailout deal.
Earlier, the authorities stated that all but the biggest two would open on Tuesday.

The central bank further said that all will remain closed to ensure the whole banking system functions smoothly.

Earlier on Monday, the island country and its euro zone partners reached a deal on a 10-billion euro (USD 13 billion) bailout package for the island nation to avoid bankruptcy and to keep it within the single currency group.

The finance ministers of the euro zone nations agreed at an emergency meeting in Brussels to down size the banking sector to achieve the EU average by 2018 and to gradually dissolve the Laiki Bank, the country's second largest bank.

Restructuring the Cypriot banks has been one of the main demands of the EU, which regards the island's banking sector as "too big" compared to its economic output.

Cyprus' increasing significance as a tax haven and hub for money laundering also has been a concern for its EU partners.

With Agency Inputs