Cyprus Problem | South’s Banks Being Temporarily Propped Up by ECB

Cyprus Problem | South’s Banks Being Temporarily Propped Up by ECB

Germany’s Finance Minister, Wolfgang Schaeuble, explained that at the moment the European Central Bank was temporarily covering two Cypriot Bank’s liquidity problems and he said that it is not even a certainty they would ever reopen let alone open in the near future. “Someone needs to explain this to the Cypriots,” he said. The ECB promised to provide liquidity to banks in Cyprus but only within the central bank’s rules.

Crowds outside parliament broke into applause following the vote to reject the bailout, chanting, “Cyprus belongs to its people.” Ironically, the Greek Cypriot Finance Minister has gone to Russia to raise money through giving away the south’s gas future. Meetings with Russia have so far ended with no solution and it is believed that Europe will have to cut off its aid fairly soon if an alternative to the rejected bailout plan is not passed by parliament within the next few days.

Print Friendly, PDF & Email

Comments are closed.