On Friday, the European Central Bank said it was putting the eligibility of Cyprus's debt on hold, for the time being. The procedural measure would take place due to the bank's need to refinance its operations.

The update came from Cyprus on Thursday when it said it was initiating a debt exchange. The move includes trading Euro 1 billion of state bonds for up-to-date, longer-dated arrears. This could aid the Euro zone member to meet the terms of its bail out project.

The ECB's move was believed to be temporary. It said in a report, "The Governing Council of the European Central Bank (ECB) has decided to temporarily suspend the eligibility of marketable debt instruments issued or fully guaranteed by the Republic of Cyprus for use as collateral in Eurosystem monetary policy operations."

"This decision takes into account the changes in the credit rating of the Republic of Cyprus as a result of the transactions announced by the Ministry of Finance of the Republic of Cyprus on 27 June 2013," it added. "In line with established procedures, the Governing Council of the ECB will assess the potential eligibility of marketable debt instruments issued or fully guaranteed by the Republic of Cyprus again upon the conclusion of the above-mentioned transactions."