Cyprus received 2billion euros ($2.6bn) on Monday as the first installment of its international billion dollar bailout package which will be expected to follow by another 1billion euros before 30th June according to the European Stability Mechanism.
In exchange for the bailout package received by Cyprus, E.U demands to confiscate approximately 60 percent of all depositor’s holdings from 100,000 euros and above from the country’s largest banks which are the Bank of Cyprus and Laiki Bank according to reports.
“The loans granted by the ESM help to maintain financial stability in the euro area and buy time for Cyprus. This time enables Cyprus to undertake the reforms necessary to rebuild its economy on a sustainable basis,” ESM managing director Klaus Regling said.
Eurozone finance ministers and officials to sign off another bailout fund for Greece to assist with reforming its economy.
According to reports Greece are expected to receive up to 7.5bn euros for its latest payment from the huge sum of 240 euro bailout that was agreed in 2010.
Another issue that concerned the Eurozone officials was the issue of Slovenia which is seen to possibly follow the same path as Greece and Cyprus in seeking help from eurozone officials.
Despite the plans unveiled to go ahead with to avoid bailout, concerns are still raised by the Slovenia’s government.
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