ECONOMY

ECB agrees to release emergency liquidity for Cypriot banks

The European Central Bank confirmed on Monday that it will approve Emergency Liquidity Assistance (ELA) for Cypriot banks after Nicosia agreed to overhaul its financial sector.

“Today, the Governing Council decided not to object to the request for provision of Emergency Liquidity Assistance (ELA) by the Central Bank of Cyprus, in accordance with the prevailing rules. It will continue to monitor the situation closely,» said the ECB.

The agreement between Cyprus and the troika foresees the closure of Cyprus Popular Bank and the restructuring of the Bank of Cyprus.

“Now steadfast implementation is key for Cyprus to regain access to financial markets and return to growth as soon as possible,» said the ECB, whose president Mario Draghi took part in the bailout talks in Brussels on Sunday night and early Monday.