ECB ultimatum forces Cyprus’ hand

An ECB ultimatum has forced government officials in Cyprus into restructuring its banking sector, reports FT.com.

The proposed plan, which will be put to a vote in Cyprus’ parliament today, includes a haircut for big depositors, while accounts totaling EUR100,000 or less will be “guaranteed.”

The government’s “move came after the ECB told it to agree on a plan to raise billions of euros towards its bailout by Monday or see emergency lending to its two biggest banks cut off,” the report explains.

Read more here.

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