News Summary: Call for Cyprus deposit guarantees

AP News
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Posted: Oct 31, 2013 12:20 PM
News Summary: Call for Cyprus deposit guarantees

GUARANTEES NEEDED: In order to maintain confidence in the financial system, an independent commission urged the Cypriot government to guarantee all bank deposits when it removes limits on money flows.

BAILED OUT: The restrictions — including a ban on cashing checks and daily withdrawal limits of 300 euros — were imposed in March after Cyprus agreed on a $13.6 million bailout.

WAY FORWARD: The government aims to eliminate almost all restrictions by early next year. The commission said a state guarantee would help restore trust in the crushed banking sector and attract foreign investment needed to get the economy out of recession.