Cyprus needs bailout or risk collapse

A government spokesman said Cyprus President Nicos Anastasiades faces a tough task to save the island’s economy.

The president was in Brussels discussing a crucial bailout with the European Union and the European Central Bank on Sunday.

According to AL-Jazeera News, Cyprus needs a 10-billion euro bailout to keep the government and the banks intact, but they have to raise 5.8 billion euros just to qualify for that package.

The European Central Bank has threatened to cut off emergency help to the country’s banks if Cyprus can’t meet the Monday deadline.

And without the assistance, the economy could collapse and force the country of the euro zone.

On Sunday, the country’s two main banks called Laiki and the Bank of Cyprus limited withdrawals at ATMS to 100 euros per day.

That led to demonstrations by hundreds of Cypriots Sunday evening, showing slogans against the “troika,” which is the European Union, and President Anastasiades. 

Banks are due to reopen on Tuesday after a 10-day shutdown.

Flickr Photo by: CyprusPictures

STORY WRITTEN BY: KURT WEISS