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The Journal Gazette

Friday, September 06, 2013 4:10 pm

News Summary: Cyprus puts bailout on track

By The Associated Press

BAILOUT PROGRESS: Cypriot lawmakers backed key pieces of legislation demanded by the country's international creditors in return for vital bailout money. But it wasn't an easy process.

TOUGH DECISION: Cyprus' parliament overturned an earlier vote rejecting measures overhauling the supervision and ownership of the country's troubled cooperative and commercial banks. The legislation was a condition for the country to get a 1.5 billion euro ($1.98 billion) installment of Cyprus' 10 billion euro loan.

NEXT STEP: The payment, which is expected to be cleared at a meeting of euro area finance ministers next week, will be used to restore the cooperative banks' depleted capital buffers. In exchange, the government would take ownership of nearly all of the cooperative banks' shares.