Cyprus works on Plan B to stave off bankruptcy
By The Associated Press
This article was published March 20, 2013 at 7:11 a.m.
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NICOSIA, Cyprus — Cypriot officials rushed Wednesday to find a new plan to stave off bankruptcy, a day after Parliament rejected an initial scheme to contribute to the nation's bailout package by seizing up to 10 percent of people's bank savings.
Tuesday's decisive rejection of the plan to take a slice of all deposits above $25,888 has left the country's bailout in question. Without the bailout, the Cypriot banking sector would collapse, devastating the country's economy and potentially causing it to leave the euro.
That could roil global financial markets as well as endanger deposits in the country even further.
Government spokesman Christos Stylianides said a meeting was under way at the central bank to discuss an alternate plan for raising funds, but also for reducing the $7.5 billion that must be found domestically.
President Nicos Anastasiades met with the representatives of his country's potential creditors — the International Monetary Fund, European Central Bank and European Commission — but issued no statement on the result. The three, collectively known as the troika, must sign off on any Plan B the Cypriots come up with if it is to be approved as part of the bailout.
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KCSAP says... March 20, 2013 at 7:32 a.m.
Time to start putting your money in your mattress. The idea is now in the democrat's minds and they will find a way get your $$$!
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