NICOSIA, Cyprus (AP) -- Cyprus' president said Friday that the bailed-out country will open casinos and bolster its tourism sector to get the economy going again.
Nicos Anastasiades unveiled a first batch of measures he said are designed to boost growth in an economy that is projected to shrink by 13 percent until 2015.
Anastasiades included casino openings among campaign pledges before his election in February.
He said Cyprus would fork out 21 million euros ($27.54 million) to partly subsidize salaries for 6,000 jobless people that will be hired in the tourism sector, give businesses tax breaks for hiring new workers and set up solar energy parks.
Young people will be granted state and church-owned land for cultivation. And those having homes or businesses seized because they're unable to pay off loans would be able to stay on as renters, he said.
Cyprus agreed last month on a 23 billion euro ($30 billion) rescue package with its euro area partners and the International Monetary Fund.
The tiny country of less than 1 million people will shoulder 13 billion euros ($17.05 billion) of overall cost of the bailout mainly by imposing heavy losses on bank deposits of more than 100,000 euros ($130,000). The country's second-largest lender, Laiki, will be broken up into a "good" bank which will be folded into the larger Bank of Cyprus and a "bad" bank which will be wound down.
The two banks had lost billions on their holdings of Greek government bonds after that country's debt restructuring.
According to audit firm PIMCO, Bank of Cyprus will need 3.96 billion euros and Laiki 3.835 billion euros to restore their capital buffers by June 2015 under the firm's adverse scenario.
Cyprus' third-largest bank, Hellenic, will need 333 million euros; cooperative banks will need 589 million euros.
The figures are included in a document that a banking official provided to The Associated Press on condition of anonymity because the recapitalization needs of each individual bank haven't been made public.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Here's How Intel Corporation Crushed It in 2017
It was a breakout year in many ways for the data center first provider, and it’s just the beginning of what’s to come.
3 Things You Can Do This Year to Increase Your Social Security Benefits
Want more money out of Social Security? Here's how to get it.
These Companies Could Benefit the Most From Self-Driving Cars -- and They're Not What You Think
The biggest beneficiaries of hot new tech may be boring old memory makers.