Cyprus gets aid deal, but Laiki Bank to close: EU • U.S. stock futures rise on Cyprus news |
Cyprus gets aid deal, but Laiki Bank to close: EU •
U.S. stock futures rise on Cyprus news |
MARKET PULSE March 24, 2013, 10:24 p.m. EDT
By Sarah Turner
SYDNEY (MarketWatch) -- Eurogroup officials announced a deal to provide Cyprus with 10 billion euros ($13 billion) in aid, in exchange for a series of measures which include the closure of a major bank and a levy on some large deposits. Top officials from the Eurogroup -- which represent the finance ministers of the 17 euro-zone nations -- briefed the news media on the deal shortly after midnight Monday morning, beating a deadline that would have shut down European Central Bank support and likely resulted in Cyprus leaving the currency bloc. Eurogroup chief Jeroen Dijsselbloem said deposits of less than €100,000 would be protected, but added that there was no way to save the country's second-largest lender, Popular Bank of Cyprus or "Laiki Bank."
Cyprus: Full text of Eurogroup statement
The Eurogroup has reached an agreement with the Cypriot authorities on the key elements necessary for a future macroeconomic adjustment programme. This agreement is supported by all euro area Member States as well as the three institutions. The Eurogroup fully supports the Cypriot people in these difficult circumstances.
The programme will address the exceptional challenges that Cyprus is facing and restore the viability of the financial sector, with the view of restoring sustainable growth and sound public finances over the coming years.
The Eurogroup welcomes the plans for restructuring the financial sector as specified in the annex. These measures will form the basis for restoring the viability of the financial sector. In particular, they safeguard all deposits below EUR 100.000 in accordance with EU principles.
The programme will contain a decisive approach to addressing financial sect