The Management of Financial Crises Law of 2011, as amended by Law 40(I) of 2012 is an enabling measure which regulates the delegation of powers to the Council of Ministers and to the Central Bank of Cyprus (CBC) in order to allow intervention to address liquidity or solvency problems of the financial system and to strengthen the capital base and the financial position of financial institutions in Cyprus during periods of financial crisis where, in the absence of such support, these institutions will cause systemic disruptions in the financial system.
July 16 2012