Cyprus parliament starts debate on bank break-up, fund

Published March 22, 2013

| Reuters

Cyprus's parliament convened in an emergency session on Friday to discuss legislation breaking up the island's second-largest lender as the country teetered on the brink of financial meltdown.

Lawmakers was expected to discuss creating a so-called "solidarity fund", even though international lenders have rejected it as an option for the country to raise cash.

They were also due to discuss imposing capital controls, giving authorities power to restrict cash outflows amid worries of a bank run.

(Reporting By Karolina Tagaris, writing by Michele Kambas; Editing by Andrew Heavens)

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