Belfast Telegraph

Sunday 28 December 2014

Cyprus banks 'may never reopen'

German finance minister Wolfgang Schaeuble fired a warning shot over Cyprus' economic status (AP/Markus Schreiber)
German finance minister Wolfgang Schaeuble fired a warning shot over Cyprus' economic status (AP/Markus Schreiber)

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.

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting? customercare@belfasttelegraph.co.uk

Latest News

Latest Sport

Latest Showbiz