Banks in Cyprus closed until Thursday

Suffocation continues in the Cypriot market, as banks in Cyprus will be closed Tuesday and Wednesday.

 

By decision of Cypriot Finance Minister Michalis Sarris, on the recommendation of the Governor of the Central Bank, Panicos Demetriades, officials decided the banks open on Thursday.

 

As broadcast by Cypriot media Cyprus president Anastasiadis has not accepted ECB’s request of the for immediate lifting of restrictions on subsidiaries and cooperatives of Greek banks, as he did not want to risk a “bank run.”

 

Before the complete overturn on the issue of reopening the Cypriot banks late Monday, all bank branches except the Bank of Cyprus and Laiki were expected to open today.

 

Meanwhile, despite pressure for no restrictions on transactions with banks in Cyprus, besides Laiki and the Bank of Cyprus, by the European Central Bank (ECB), information so far indicates that the cap of 100 euros in transactions is still in effect.

 

This, together with the delay of the banks opening, creates a huge problem in the supply of essential goods and to the employees in the banking sector.

 

Under the restrictive measures that will be taken to prevent the collapse of the financial system upon the reopening of the countries banks, the Cypriot government is preparing to implement a weekly withdrawal limit per depositor. The exact amount of this limit is still unknown.

 

The Cypriot State will also prevent all movement of money abroad and will establish a special committee that will be examining such requests and giving the final permission. It is estimated that these specific measures will be effective from 3 to 6 months.