Cyprus Warned Over Parliament’s Bailout Rejection

Germany’s finance minister has warned Cyprus that its crisis-stricken banks may never be able to reopen if it rejects the terms of a bailout.

Wolfgang Schaeuble said major Cypriot banks were “insolvent if there are no emergency funds”.

He was speaking after the Cypriot parliament rejected an international bailout deal that would have imposed a one-off tax on bank deposits.

Frantic talks are under way to try to agree an alternative plan.

Leaders of political parties in Cyprus are due to meet later after parliament rejected the controversial levy, proposed as part of a 10bn-euro bailout package.

The BBC’s Mark Lowen, in Nicosia, says the country is in turmoil and the eurozone’s plan has completely unravelled.

BBC

Posted by Editor on March 20, 2013. Filed under WORLD. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry