ECB continues emergency credit for Cyprus

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Associated Press

Posted on March 25, 2013 at 12:03 PM

Updated Monday, Mar 25 at 12:04 PM

FRANKFURT (AP) — The European Central Bank gave the green light to continue emergency credit for Cyprus' banking system.

The decision is a key step ahead of the hoped-for reopening of the country's banks in the wake of a financial bailout by other euro currency member countries.

The ECB said Monday it "decided not to object" to the Central Bank of Cyprus continuing to provide emergency credit. The credits are at the local central bank's risk — but it needs ECB permission.

The emergency credit is a key support measure as it is not clear how many depositors will pull their money out once banks reopen. The credit support would help banks weather that.

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