Skip to main content
Advertising

Originally published Monday, April 29, 2013 at 4:08 AM

  • Share:
           
  • Comments (0)
  • Print

Cyprus parliament readies for bailout vote

Cyprus' lawmakers are voting Tuesday on a multi-billion bailout agreement aimed at preventing the country from going bankrupt.

The Associated Press

Most Popular Comments
Hide / Show comments
No comments have been posted to this article.
Start the conversation >

advertising

NICOSIA, Cyprus —

Cyprus' lawmakers are voting Tuesday on a multi-billion bailout agreement aimed at preventing the country from going bankrupt.

The 56-seat parliament is expected to narrowly approve the 23 billion-euro ($30 billion) deal that the country struck with its euro partners and the International Monetary Fund last month.

The government has warned the agreement's rejection will mean the country's economic collapse and possible exit from the euro, used by 17 European Union countries.

But anger still lingers over the deal's terms which include forcing depositors to take major losses on savings over 100,000 euros in the country's two biggest lenders. Second-largest lender Laiki - which was worst affected by its exposure to toxic Greek debt and loans - is being wound down and folded into the bigger Bank of Cyprus.

Ratcheting up frustration among local businesses and ordinary Cypriots are a string of capital controls such as a 300-euro daily withdrawal limit that authorities imposed last month to prevent a run on banks - the first such controls that have been introduced in the common currency's 14-year history.

The communist AKEL and socialist EDEK parties said they will vote against the agreement to protest what they said is a deal that undermines the country's sovereignty and leads to social misery.

A mass demonstration called by left-wing trade unions and organizations is planned outside the parliament during the vote.

Voting in favor of the agreement will be the ruling, center-right Democratic Rally party along with ally Democratic Party, which together hold exactly half the seats. Right-wing European Party leader Demetris Syllouris is also expected to cast an approving vote.

Other European parliaments, including those of Germany and the Netherlands, have already signed off on the accord and Cypriot lawmakers have already approved most of its terms.

Cyprus' state coffers are effectively empty. Government spokesman Christos Stylianides said that once the agreement is approved, the first installment of bailout cash is expected by mid-May.

News where, when and how you want it

Email Icon


Advertising
The Seattle Times

To keep reading, you need a subscription.

We hope you have enjoyed your complimentary access. Subscribe now for unlimited access!

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►