FRANKFURT (Reuters) – Cyprus’s plan to impose capital controls threatens to test the ties that bind Europe’s monetary union and could see euros on the Mediterranean island valued differently to those in the rest of the bloc.

The capital controls, being imposed to avert a run on banks after an EU bailout, will limit foreign transactions and capital outflows but not movements of money within the country itself, the head of the Cyprus chamber of commerce said on Wednesday after meeting government officials.

FRANKFURT, March 27 (Reuters) – Cyprus’s plan to impose
capital controls threatens to test the ties that bind Europe’s
monetary union and could see euros on the Mediterranean island
valued differently to those in the rest of the bloc.

The capital controls, being imposed to avert a run on banks
after an EU bailout, will limit foreign transactions and capital
outflows but not movements of money within the country itself,
the head of the Cyprus chamber of commerce said on Wednesday
after meeting government officials.

NICOSIA/FRANKFURT, March 21 (Reuters) – The European Union
gave Cyprus till Monday to raise the billions of euros it needs
to secure an international bailout or face a collapse of its
financial system that could push it out of the euro currency
zone.

In stark twin warnings on Thursday, the European Central
Bank said it would cut off liquidity to Cypriot banks and a
senior EU official made clear to Reuters that the bloc was ready
to see the bankrupt island banished from the euro in the belief
it could then contain damage to the wider European economy.

NICOSIA/FRANKFURT (Reuters) – The European Central Bank gave Cyprus until Monday to raise billions of euros to clinch an international bailout or face losing emergency funds for its banks and inevitable collapse.

The ultimatum came with the island’s leaders locked in talks on a “Plan B” to try to raise 5.8 billion euros demanded by the EU under a 10 billion euro ($13 billion) rescue, after angry lawmakers threw out a tax on deposits as “bank robbery”.

FRANKFURT (Reuters) – The European Central Bank set Cyprus a Monday deadline to agree a bailout plan, threatening to cut off funding to the islands’ cash-strapped banks if a program is not agreed by then with the EU and the IMF.

The decision by the ECB’s Governing Council, announced on Thursday, gives Cyprus a last chance to agree a bailout that bears the EU/IMF stamp, or else succumb to financial meltdown.

FRANKFURT (Reuters) – The European Central Bank is prepared to cut off funding to Cyprus and let the Mediterranean island succumb to financial meltdown if it has to, confident it has unlimited firepower to protect the rest of the euro zone.

Cyprus propelled the 17-nation bloc into uncharted waters on Tuesday by rejecting a proposed levy on bank deposits as a condition of a 10 billion euro ($12.9 billion) EU bailout.

FRANKFURT, March 20 (Reuters) – The European Central Bank is
prepared to cut off funding to Cyprus and let the Mediterranean
island succumb to financial meltdown if it has to, confident it
has unlimited firepower to protect the rest of the euro zone.

Cyprus propelled the 17-nation bloc into uncharted waters on
Tuesday by rejecting a proposed levy on bank deposits as a
condition of a 10 billion euro ($12.9 billion) EU bailout.

FRANKFURT/AMSTERDAM (Reuters) – One of the biggest questions facing financial markets is the will-they or won’t-they hovering over the European Central Bank’s bond-buy program.

The bank has pledged to stop any speculative sell-offs of troubled euro zone bonds that threaten to break up the bloc, saying it will buy them itself if necessary. But it has never done so, leaving open the question of when or whether it ever will.

FRANKFURT (Reuters) – A wary German central bank said on Tuesday it had set aside billions more euros against what it deems risky European Central Bank moves, and criticised France directly for “floundering” in its reform drives.

Presenting Bundesbank 2012 results, Jens Weidmann, the bank’s chief, said the euro zone crisis, which has eased as a result of ECB funding promises, was not over. He urged governments to tackle the roots of their troubles with reforms.

FRANKFURT (Reuters) – The euro zone crisis is not over, France is slipping on reforms and the Bundesbank has set aside billions in new provisions for what it sees as risky European Central Bank moves, Germany’s central bank said on Tuesday.

Presenting Bundesbank 2012 results that showed a sharp increase in its risk provisions, the German central bank’s chief, Jens Weidmann, urged governments to tackle the roots of their troubles with reforms.