by Shepard Ambellas
March 28, 2013
NICOSIA — After nearly 2 weeks the banks in Cyprus have now reopened Thursday with strict limitations imposed.
Cypriot banks struggled to avoid crowds of people from running on the bank as police units stood strong in the region.
The BBC reported, “Branches began to open at noon local time (10:00 GMT) and will close at 18:00 (16:00 GMT).
Some did not open on time, causing tension among customers. The longer queues formed outside branches of Laiki, which is being wound up.”
Onlookers and citizens interviewed by Fox News had different takes on the situation ranging from ‘everything is fine’ to, “the financial system is going to collapse very soon”. Some even deposited funds into the bank.
For the next week citizens can only withdraw €300 per day which was set as a strict limit. Another rule limits people from leaving the country with more than €3000. There is also a strict watch on wire transfers exiting the country. The region is moderating outbound cashflow in a dictatorial style move.
Fox News reports;
Banks in Cyprus have been shut since March 16 to prevent people draining their accounts as politicians scrambled to come up with a plan to raise enough funds for Cyprus to qualify for 10 billion euros ($12.9 billion) in bailout loans for its stricken banking sector. An initial plan that would have seized up to 10 percent of people’s bank deposits was soundly rejected in Parliament, leaving politicians struggling to come up with an alternative.
The deal was finally reached in Brussels early Monday, and imposes severe losses on deposits of over 100,000 euros in the country’s two largest banks, Laiki and Bank of Cyprus. Laiki will be broken up, with its good assets being absorbed by Bank of Cyprus. The exact amounts of the losses have not yet been officially announced.
Experts fear that the inevitable reality of a economic collapse is looming on the horizon and will send shockwaves around the region. The ripple effects will be felt all the way to Britain according to at least one economist.
The European government has totally crossed the line showing that they will do anything including taking up to 7% of small depositors money in order to bail themselves out. Fear strikes the minds of most everyday people as this alarming threat is still looming and worse.
The president, Nicos Anastasiades, announced that he will cut his salary to show a common bond with the people.
Rob Williams reports, “The president authorized the accountant-general to make the pay cut.
Mr Anastasiades’ Cabinet ministers have also decided to slash their own wages by 20 per cent.
The Cabinet has also appointed a panel of three former supreme court judges to investigate whether or not criminal activity played any part in the island’s economic crisis.”
Weather or not this is a staged ploy to gain confidence amongst the people of the region is yet to be seen.
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