03/22/2013 06:08 pm ET Updated May 22, 2013

Cyprus Bank Bill Passed: Government To Split Good Assets And Bad In Pursuit Of Bailout

NICOSIA, March 22 (Reuters) - Cyprus adopted legislation on Friday allowing the government to split the island's failing lenders into good and bad banks as it races to clinch a bailout from the European Union and avert a financial meltdown.

Officials say the law is likely to be applied first to Cyprus's second largest lender, Cyprus Popular Bank, to restructure it without hurting small depositors.