The plenary of the Cypriot House of Representatives approved on Thursday the expansion of the 440-billion-euro European Financial Stability Facility (EFSF).

The law, approved with on abstention by the Green Party MP, will raise Cyprus` guarantees to 2.063 billion euro from 863 million euro.

On July 21 the EU leaders agreed during an extraordinary EU Summit to give the EFSF powers to buy bonds in the secondary market, to give states precautionary credit lines before they were shut out of credit markets, and lend governments money to recapitalise banks.