ECONOMY

Cyprus central banker Demetriades sees solution in Nicosia by Monday

The head of Cyprus’s central bank believes that a solution to the impasse between Nicosia and the troika will be found by Monday in order for the two sides to agree a bailout.

“I expect that there will be a support program for Cypriot economy by Monday,” said Panicos Demetriades after talks with President Nicos Anastasiades on Thursday.

The Cypriot government and opposition parties are examining the creation of a wealth fund consisting of state assets, church property and social security fund reserves in a bid to negate the need for a deposit tax or to allow the levy to be set at lower levels than the original plan agreed by the Eurogroup.

The European Central Bank said on Thursday morning that on Monday it would stop emergency lending to insolvent Cypriot banks if no bailout had been agreed.