ECB continues to provide emergency credit to Cyprus

FRANKFURT - The European Central Bank (ECB) on Monday decided to continue to provide emergency credit to Cyprus after a fresh bailout deal was reached.

"Today, the Governing Council decided not to object to the request for provision of Emergency Liquidity Assistance (ELA) by the Central Bank of Cyprus, in accordance with the prevailing rules," said a statement released by the ECB.

The ECB acknowledged the agreement reached by the Eurogroup with the Cypriot authorities, "which outlines the necessary key elements of the European Uunion and International Monetary Fund adjustment program for Cyprus."

Eurozone finance ministers early Monday approved a new bailout plan for Cyprus, which would wind down the country's second largest bank and levy a tax on bank deposits over 100,000 euros.

The deal is crucial for Cyrpus to raise 5.8 billion euros ($7.48 billion) in order to secure a 10-billion bailout from international lenders.

"Now steadfast implementation is key for Cyprus to regain access to financial markets and return to growth as soon as possible," said the ECB statement. The ECB said it would continue to monitor the situation closely.

The parliament of Cyprus voted against a former deal to levy a bank deposit tax. The ECB earlier decided that it would cut off the emergency liquidity assistance unless a new deal could be reached till Monday.