Threat of chaos in Cyprus

Threat of chaos in Cyprus

 

The risk of bankruptcy came close to leading the situation in Cyprus out of control. After news of the Laiki Bank closure, hundreds of workers at the bank that will be laid off gathered outside the building of the Cypriot House of Representatives.

The approximately 500 employees were faced with strong police forces outside the Cypriot Parliament building where officials will hold a meeting to approve the creation of the Solidarity Fund.

A small group of people managed to break through the police cordon and tried to enter through the main entrance of the House. Currently the situation has been defused.

According to CyBC, this decision has already been presented to the employees of the bank. The news story talks about 500 layoffs. However, the Central Bank spokesman Aliki Stylianou said “I am obliged to deny the closure of Laiki Bank.”

Meanwhile, the political leaders and the leadership of the Central Bank of Cyprus held an emergency meeting chaired by president Nikos Anastasiadis.

“There are new data and we have to deal with them,” deputy chairman of the ruling Democratic Rally, Averof Neophytou said, adding that everyone’s the effort is to “avoid bankruptcy.”

Cypriot Parliament president Yiannakis Omirou asked to “keep a climate of understanding and unity to tackle the critical situation,” and said “there is no reason to create a climate through rumors and whispers that poisons political stability and smoothness.”

The endless queues outside the ATMs of Cypriot banks, the fact that Cypriots cannot make withdrawals over 500 euros and the threat of default have created a lot of problems to the citizens of the island.