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South Cyprus parliament votes in 9 bills for bailout

23 March 2013

The South Cyprus Parliament has voted in nine bills intended to reform and restructure the South Cyprus banking sector.

The bills are designed to protect the banking system and avert a mass exodus of bank deposits. Included in the bills is the setup of an ‘Investment Solidarity Fund’ which would include the returns from natural gas and the proceeds of bonds or securities from other companies or legal entities.

There is a bill that empowers the Central Bank of Cyprus to act as the Resolution Authority, ensuring the regular operation of the financial system in order to safeguard the national interest.

However, MPs did not vote on the highly contentious levy on bank deposits, now expected to take place on Saturday. If it is approved, President  Anastasiades will travel to Brussels this weekend to present the resolutions voted in by Parliament.

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