By Andreas Plecko
FRANKFURT--German Finance Minister Wolfgang Schaeuble has
submitted the Cyprus bailout deal to Germany's lower house of
parliament, the Bundestag. In a letter to Bundestag President
Norbert Lammert Saturday, Mr. Schaeuble sought parliamentary
approval for the rescue package.
The deal, which Cyprus struck in late March with the European
Union and International Monetary Fund, lines up 10 billion euros
($13.11 billion) in financing for the government. It will see
Cyprus's second-largest bank, Cyprus Popular Bank PCL (CPB.CP) shut
and the country's largest bank, Bank of Cyprus PCL (BOCY.CP),
aggressively downsized. Shareholders, bondholders and bank
customers with large deposits will also have to carry part of the
costs.
In the letter, Mr. Schaeuble said the financial requirements for
the remainder of the banking sector is around EUR2.5 billion. Prior
to the decision to shut down or restructure banks in Cyprus the
capital requirement had been estimated at up to EUR10 billion,
according to the letter.
The Bundestag is expected to vote on the deal on Thursday.
Write to Andreas Plecko at andreas.plecko@dowjones.com