Graham Bishop's Blog: A new (and 'narrow') bank for Cypriot citizens?

17 March 2013

The 19th March deadline for the ECB to switch off Emergency Lending Facilities (ELA) was a powerful factor in forcing negotiations, as such a switch-off would have led to the collapse of the Cypriot banking system and thus the whole economy.

However, The Eurogroup only reached 'political agreement' on the 'cornerstones' of an agreement, so more detail is awaited. This is a moment for imaginative new policies by the EU to show strong solidarity. Could the EU create a new (and initially 'narrow') citizens' bank leaving 'black' money to wait for the old banks to be run off completely - creating a new frontier for 'black' money?

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