ECONOMY

Cyprus proposes winding down Laiki bank with bill that will protect smaller deposits

Cyprus will take measures to consolidate its banking sector, including steps to avoid bankruptcy at its second largest lender, Cyprus Popular Bank (Laiki), Central Bank governor Panicos Demetriades said on Thursday.

“By establishing this legal framework, resolution measures will be imposed on Popular Bank so that it will be in a position

to continue to offer banking services to its clients next Tuesday,» when banks are due to reopen, he told reporters.

Demetriades did not elaborate, but said the steps would protect deposits of up to 100,000 euros.

[Reuters]