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"Nicosia (has) little choice but to acquiesce to a (plan) agreed last weekend or face collapse of its financial sector - and possible exit from the euro."
Approved legislation restructures Cyprus' financial sector. Controls were established. Doing so limits banking transactions.
If implemented, Bank Laiki (the country's second largest) splits in two. A good bank will have deposits up to 100,000 euros. A bad one will hold larger uninsured amounts. Details remain sketchy.
Laiki CEO Takis Phidias said splitting the bank into good and bad parts "will be a disaster not just for the bank, but for the economy of Cyprus."
"We're talking about six billion euros belonging to Cyprus depositors being transferred to the bad bank with little possibility of them recovering their money.""We're talking about a lot of businesses having their assets and accounts frozen."
"Who gives anyone the right to say that someone with 100 million euros will get 100,000 back and someone with 80,000 (gets) it all. I'm not sure parliament has the right to decide this."
He added that Laiki's problem hits other banks. It'll happen quickly. Normal operations will be affected.
Things remain unsettled. Legislators face a Monday deadline. Eurocrats said credit will be cut off if resolution isn't achieved. They have final say. Brussels controls things. Cyprus and other Eurozone countries are entrapped under one size fits all rules.
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