Thursday, March 21, 2013

ECB Threatens To Cut Off Cypriot Banks




From the WSJ: The European Central Bank ramped up pressure on Cyprus to seal a bailout agreement with the European Union and the International Monetary Fund by Monday, making further funding for the island’s ailing banks contingent on a deal.

The ECB said it would extend emergency funding that has kept the island’s banks in operation while the bailout plan was being negotiated in recent months only until Monday. “Thereafter, Emergency Liquidity Assistance (ELA) could only be considered if an European Union/International Monetary Fund program is in place that would ensure the solvency of the concerned banks,” the ECB said in a statement….

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