Cyprus, EU/IMF reach draft proposal for banks

Cyprus, the European Union and the International Monetary Fund have agreed a new plan to try to resolve the island’s shattered banks and finance a rescue of the country, EU officials said early on Monday.

The proposal, which will now be put to euro zone finance ministers for approval, will involve setting up a “good bank” and a “bad bank”.

It will mean that Popular Bank of Cyprus, the island’s second largest bank which is also known as Laiki, will effectively be shut down.

via Business feed http://www.scmp.com/business/economy/article/1199273/cyprus-euimf-reach-draft-proposal-banks