The European Central Bank (ECB) said on Tuesday it remains committed to providing liquidity within certain limits despite Cypriot lawmakers overwhelmingly rejecting a levy on savers – a key term of the €10 billion proposed bailout.
“The ECB takes note of the decision of the Cypriot parliament and is in contact with its troika partners,” the bank said in a statement.
“The ECB reaffirms its commitment to provide liquidity as needed within the existing rules.”
The Cypriot Parliament late on March 19, by a vote of 36-0 with 19 abstentions, overwhelmingly rejected a proposal put forth by international lenders and backed by President Nicos Anastasiades to confiscate up to 9.9 percent of bank deposits to help pay for a bailout. The rejection of the tax throws into doubt an international bailout for the troubled euro zone member needed to avert default and a banking collapse.
The central bank said it is in contact with the International Monetary Fund and its European Union partners on the issue.