On Friday, the Cypriot government announced it would close five banks that were in default on their debts.
The banks included Cyprus First Bank, Cyprus First International Bank, Cypriya National Bank, Greek Cypriots Bank and Cyprus First Commercial Bank.
The announcement came days after the European Central Bank warned Cyprus that it could face default on its debt if it does not reduce its borrowing costs.
Cyprus First Financial Services Group, Cyprus’s largest lender, is closing five banks, the country’s banking ministry said in a statement.
The government said in March that it would shutter five banks and was now closing the banks that had been closed.
Cyprus has had trouble with its banks, and the government is trying to limit the impact of the financial crisis by closing the five.
The bank closures will affect a total of 3.7 million depositors.
The Cypriy government has been working on the decision to close the banks since mid-January.
The Bank of Cyprus said in February that it was closing four banks and the rest of its banking operations, including its credit cards.
The closure of the banks, which had been the biggest threat to Cyprus’s financial stability, will help to restore confidence in the country, the bank said in the statement.
Cyprios Finance Minister Nicos Apostolides said in late February that the government was planning to close three more banks, including one that was a key player in the financial system.
“The decision to open the banks and their assets is an appropriate measure, based on the facts and circumstances, in order to restore stability in Cyprus,” he said.
In addition to the closing of the five banks the government has also announced plans to sell the Cyprus’ sovereign bonds, which have been valued at about $4.8 billion.
That decision has been met with criticism by the European Commission and other financial institutions, as it comes as Cyprus is facing a massive banking crisis.
The country’s debt has been in crisis for more than a year.
Cyprus’ government and the International Monetary Fund have said the country has no financial cushion.
On Friday the government said it was considering an alternative strategy to continue its banking rescue efforts.
The new strategy involves selling bonds from Cyprio’s sovereign bond fund.
The central bank said the government would continue to maintain the interest rate on its bond portfolio.
The decision comes after the central bank reduced its forecast for Cypriotic bond yields from 5.9 percent to 4.7 percent, and from 4.4 percent to 3.4.
Cyprus is a member of the European Union.
Cyprus had a debt crisis of its own in 2014 when its government and its creditors were unable to meet a $1.5 billion payment.
The European Union and the European Reserve Bank have said that the country is in a difficult position because of the global financial crisis and a fall in international lending.