ECB OKs Emergency Liquidity for Cypriot Banks

The European Central Bank decided on Monday to give Cypriot banks access to emergency central bank funding after the country struck a bailout deal.

Last week, the ECB piled pressure on Cyprus, saying it would cut off emergency funding to Cypriot banks if the country failed to agree on a bailout from international lenders by Monday. Early on Monday, Cyprus clinched a deal.

``Today, the Governing Council decided not to object to the request for provision of Emergency Liquidity Assistance (ELA) by the Central Bank of Cyprus, in accordance with the prevailing rules,'' the ECB said in a statement. ``It will continue to monitor the situation closely.''