Thursday 23 October 2014

Cyprus banks 'may never reopen'

Published 19/03/2013 | 22:11

Warning: German finance minister Wolfgang Schaeuble

Germany's finance minister has warned that it is unclear whether the banks in Cyprus will ever be able to open again.

Banks in Cyprus have been shut since Saturday to avoid a run while the tiny Mediterranean country tries to negotiate a rescue for its economy.

Wolfgang Schaeuble said two of Cyprus's big banks are being propped up solely by emergency liquidity from the European Central Bank that is contingent on all sides agreeing on a rescue package.

"Someone needs to explain this to the Cypriots," Mr Schaeuble told German public television ZDF.

Politicians in Cyprus have voted to reject a bailout deal that would have seized up to 10% of bank deposits to prevent a collapse of the country's banks.

Press Association

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