Banks in Cyprus reopened to customers for the first time in nearly two weeks Thursday, albeit with strict restrictions on transactions, after being closed to prevent people withdrawing all their savings during the country's acute financial crisis.
Large lines had formed outside the banks ahead of the opening of banks for six hours from noon. Systems were frozen ahead of the start of business, and guards from a private security firm reinforced police outside some ATMs and banks in the capital, Nicosia.
Branches of the country's troubled second-largest lender, Laiki, didn't open on time due to a delay in the bank's computer system. Laiki spokesman Costas Archimandrites said there had been an initial issue with the bank's system but that 80 per cent of branches had opened after about half an hour.
At one branch in central Nicosia which was still shut nearly an hour later, an employee emerged from the bank and pleaded for patience with the line of about 50 people. Most waited calmly, although some began to complain about being made to wait.
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 (roughly $13 billion US) in bailout loans for its stricken banking sector. An initial plan that would have seized up to 10 per cent of people's bank deposits was soundly rejected in parliament, leaving politicians struggling to come up with an alternative.
Withdrawals limited to €300 euros
The deal was finally reached in Brussels early Monday, and imposes severe losses on deposits of over €100,000 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.
Although the banks have opened, customers are severely limited in what transactions they can carry out. Capital controls, imposed to prevent worried savers and businesses rushing to withdraw all their money, include limiting cash withdrawals to €300 euros ($383) per day per person and limiting payments abroad to €5,000.
No cheques can be cashed, although they can be paid in, and people leaving the country can only take up to €1,000, or the equivalent in foreign currency, with them in cash.
The country's general accounting office said pensions and other social security payments, together with salaries for government employees, will be in bank accounts next Tuesday and Wednesday.
The restrictions will be reviewed daily and are initially in place until next Wednesday, the decision published by the Finance Ministry states.
"I believe this will be a very difficult day for both people and bank employees because no matter how much information there was, things were changing all the time," said Costas Kyprianides, a grocery supplier in Nicosia. "Even us traders, like myself, have so many checks which I need to deposit so I can make ends meet."
During the bank closure, ATMs were working but quickly ran out of money. Those of the two troubled banks, Laiki and Bank of Cyprus, had imposed withdrawal limits of 100 euros a day.
"Up until last night things kept on changing," said store owner Antonis Arotokritou. "There's an overall panic and uncertainty from both the bankers and the rest of the people."
The stock market announced it would remain closed on Thursday "in order to ensure the smooth functioning of the stock market and protect investors." It too has been closed since March 16.
Anda sedang membaca artikel tentang
Cyprus banks reopen with transaction restrictions
Dengan url
http://belajarbisnismen.blogspot.com/2013/03/cyprus-banks-reopen-with-transaction.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Cyprus banks reopen with transaction restrictions
namun jangan lupa untuk meletakkan link
Cyprus banks reopen with transaction restrictions
sebagai sumbernya
0 komentar:
Posting Komentar