Cyprus Government Proposal Gives Officials Power To Impose Capital Requirements On Banks

Cyprus Government Proposes Bill To Crack Down On Banks
People queue at an ATM outside a closed Laiki Bank branch in capital Nicosia, Cyprus, Thursday, March 21, 2013. The European Central Bank says it will keep emergency aid for Cyprus' troubled banks in place at least until Monday but will have to cut it off after that unless an international rescue program is drawn up. (AP Photo/Petros Giannakouris)
People queue at an ATM outside a closed Laiki Bank branch in capital Nicosia, Cyprus, Thursday, March 21, 2013. The European Central Bank says it will keep emergency aid for Cyprus' troubled banks in place at least until Monday but will have to cut it off after that unless an international rescue program is drawn up. (AP Photo/Petros Giannakouris)

NICOSIA, March 21 (Reuters) - The Cypriot government submitted a bill to parliament on Thursday giving the finance minister or central bank governor the right to impose capital controls on banks.

"The purpose of this law is, in case of an emergency for purposes of public order or security, to assign powers to the (Finance) Minister, or the (Central Bank) governor to take and impose temporary restrictive measures, including restrictions on capital controls," said the bill, a copy of which was seen by Reuters.

Parliament was due to sit on Thursday evening.

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