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

Cyprus Inches Closer To Bailout
A woman withdraws money from an ATM of a Laiki (Popular) Bank branch in the centre of the capital, Nicosia, on March 21, 2013. Cypriot leaders are to decide on a newly drawn up plan aimed at securing a bailout for the near-bankrupt eurozone member, after parliament rejected a controversial tax on savings. AFP PHOTO / HASAN MROUE (Photo credit should read HASAN MROUE/AFP/Getty Images)
A woman withdraws money from an ATM of a Laiki (Popular) Bank branch in the centre of the capital, Nicosia, on March 21, 2013. Cypriot leaders are to decide on a newly drawn up plan aimed at securing a bailout for the near-bankrupt eurozone member, after parliament rejected a controversial tax on savings. AFP PHOTO / HASAN MROUE (Photo credit should read HASAN MROUE/AFP/Getty Images)

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.

Before You Go

Popular in the Community

Close

What's Hot