YEREVAN, March 21. /ARKA/. Evdokimos Xenophontos, the deputy chairman of the Bank of Cyprus, one of the two banks needing recapitalisation, told reporters it was unacceptable for Cyprus to raid the deposits of non-Cypriots, Incyprus portal reports.
Should Cyprus need a haircut it should apply only to local deposits, he said.
According to the source, Cabinet was meeting on Wednesday night to discuss the situation in the economy after the House rejected an unprecedented levy on depositors.
The meeting came after intense consultations between the Troika, the government, the Central Bank and political party leaders.
President Anastasiades has called a meeting of party leaders for Thursday morning. Cabinet is expected to reconvene on Thursday to discuss a decree to control cash outflows and foreign exchange transfers once the banks reopen.
In a statement on Wednesday the Finance Ministery said that following the rejection of the bill “it is necessary on the grounds of public interest in order to ensure financial stability to declare March 21 and 22 as Bank Holidays.”
Media reports said the Cabinet were also considering a draft bill which they said relates to the governments Plan B to raise €5.8b that the Troika is understood to be requiring Cyprus to cover under the bailout deal.
That was the amount that would have been raised had the deposit haircut been approved on Tuesday by the House.—0-
