| Cyprus targets big depositors in bank plan | Cyprus announced plans on Thursday to overhaul the island's banking industry, including forcing big depositors to accept losses on their accounts, as the European Central Bank threatened to withdraw crucial funding if the island's government failed to agree on a bailout plan.
"The banking system needs restructuring otherwise it will go bankrupt and it needs to be done immediately," said Panicos Demetriades, governor of the Central Bank of Cyprus. Deposits up to €100,000 would be guaranteed and bank jobs would be safeguarded, he added.
Mr Demetriades said a bill would be submitted to parliament later on Thursday to restructure the banking sector. The law is expected to wind up Laiki, the island's second-biggest lender, splitting it into a "good" and "bad" bank, with larger deposits folded into the latter.
Long queues formed at cash machines in Nicosia as Laiki imposed a €260 limit on withdrawals.
http://link.ft.com/r/0QSDPP/CWS5F9/HDGAS1/SP9H4G/NRCHGQ/RF/h?a1=2013&a2=3&a3=21
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