Fitch puts Cyprus bank bonds on negative rating watch

Fitch has placed Cyprus banks covered bonds on rating watch negative. There is speculation that Cypriot banks could be closed until 26 March. They are currently due to reopen tomorrow, following a five day bank holiday.

The European Central Bank (ECB)'s Jörg Asmussen has said that Banks in Cyprus are not solvent without quick recapitalisation, and that the ECB can only provide liquidity to solvent banks.