NICOSIA - The Governor of the Central Bank Panicos Demetriades said Thursday night that the banking system is to be restructured.
Thus would allow Laiki Bank to reopen on Tuesday, prevent bankruptcy and protect depositors with up to €100,000.
His statement said:
"The Central Bank of Cyprus has recommended the urgent tabling and immediate enactment into law by the House of Representatives, the legislative framework relating to the reorganisation and recovery of the Cypriot banking system. The consolidation process will prevent the risk of bank failures and protect in their entirety all insured deposits up to the amount of 100,000 euros. conditions will also be created for the recovery of the banking system and to guarantee jobs.
This is an important step towards reaching agreement on economic support for Cyprus by the European Support Mechanism and the IMF, while creating the conditions for providing the necessary liquidity in the Cypriot banking system.
With the establishment and activation of the above legislative framework consolidation measures will be implemented in the Laiki Bank, in order for it to be able to continue to provide banking services to customers, with the reopening of banks on Tuesday. Otherwise, the Bank would have been lead to immediate bankruptcy and termination of business, with devastating consequences for employees, depositors as a whole, our banking system and the economy. "