The Council of Ministers adopted Tuesday three law bills concerning financial stability and the management of financial crisis, in the light of developments in the Euro-zone.

Government Spokesman Stephanos Stephanou said after the Cabinet’s meeting that based on recent developments, in case of financial crisis there should be an immediate action to ensure financial stability.

The three bills adopted by the Council of Ministers, he added, offer the necessary institutional and legal framework that would enable Cyprus to intervene and back the financial system, should the necessity arise.

The first proposed legislation, he said, gives the Cabinet the authority to proceed to the necessary measures to address any cash flow problems in the financial system. He clarified that the Cabinet will act on the basis of a recommendation by the Central Bank of Cyprus.

Stephanou said that the second law bill concerns the establishment of an independent financial stability fund with the aim to improve the existing management framework in Cyprus and to safeguard financial stability. He added that the fund’s purpose will be the support and consolidation of credit institutions.

Referring to the third proposed legislation, he explained that it extends the existing special tax for the credit institutions.