Central bank urges Cyprus banking sector restructuring

The Cyprus Central Bank has proposed a restructuring of the island's crisis-hit banking sector, its governor Panicos Demetriades said on Thursday.

It "has recommended the urgent submission and immediate enactment into law by the House of Representatives of the legislative framework relating to the reorganisation and recovery of the Cypriot banking system," he told reporters.

"This consolidation process will prevent the risk of bank failures and protect in their entirety all insured deposits up to the amount of 100,000 euros ($129,000)," he said.

"It also creates conditions for the recovery of the banking system and guarantees jobs," said Demetriades as he entered the presidential palace in Nicosia for emergency talks ahead of an expected session of parliament.