Country Bailout, European Central Bank | featured news

As Cypriot politicians raced to find a new financial rescue plan ahead of a Monday deadline, tensions built in the streets of the capital. Residents withdrew what money they could from ATMs amid concern the banks could collapse.

Over the course of five days, the Greek government -- led by the understated conservative Prime Minister Antonis Samaras -- overcame two high hurdles in a dash to qualify for the austerity program set out by the so-called troika, made up of the European Central Bank, the International Monetary Fund and the European Commission.

Greece’s finance minister has called on the EU to implement “fully and immediately” an agreement reached last month overhauling the eurozone’s rescue fund and extending Greece a €109 billion ($157 billion) bailout. The finance ministry says Evangelos Venizelos wrote to senior officials, including European Central Bank President Jean-Claude Trichet, EU economic commissioner Olli Rehn and eurozone finance ministers. Excerpts of the letter were released Sunday.

It would make sense for Portugal to seek aid from the European Union bailout fund, although such a decision will be caught up in domestic politics, European Central Bank Governing Board member Ewald Nowotny said.