Cyprus MPs approved a bill Friday night, granting the government the right to restrict withdrawals from bank accounts in exceptional cases.
The parliament in Cyprus also approved a “national solidarity fund” to help the state raise the necessary funds for an EU and IMF bailout.
The “solidarity fund” bill presupposes nationalization of part of the assets of pension funds. MPs also imposed capital controls to prevent a run on the island’s troubled banks by temporary freezing accounts.
Thus, Cyprus hopes to raise the requisite 5.8bn euros to qualify for a 10bn-euro bailout by the EU and IMF.