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News Summary: Call for Cyprus deposit guarantees

Updated at: 10/31/2013 12:35 PM
By The Associated Press

GUARANTEES NEEDED: In order to maintain confidence in the financial system, an independent commission urged the Cypriot government to guarantee all bank deposits when it removes limits on money flows.

BAILED OUT: The restrictions _ including a ban on cashing checks and daily withdrawal limits of 300 euros _ were imposed in March after Cyprus agreed on a $13.6 million bailout.

WAY FORWARD: The government aims to eliminate almost all restrictions by early next year. The commission said a state guarantee would help restore trust in the crushed banking sector and attract foreign investment needed to get the economy out of recession.

(Copyright 2013 by The Associated Press. All Rights Reserved.)