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Cyprus banks opened: long queues but no panic, no bank run…

Savers eager to withdraw money or check their deposits formed long queues outside the banks in Cyprus, that opened their doors to public sharp 12 on Thursday after almost two weeks of closure.

Queues outside the several branches of the country’s two biggest lenders, Bank of Cyprus and Cyprus Popular Bank, no more than 40-30 minutes before the opening.

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Police handed out copies of Capital Restrictions Decree to bank clients (photovia @faisalislam)

The atmosphere is calm, most likely because customers cannot withdraw more than 300 euro, local and international media report from the island.

Bank employees let in 3-5 customers per time, doors were closed, and opened again to let new customers in when the first group exited the bank.

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Man angry at international media lurking for bank-run (photo via @Tesa_RT)

Some branches of Cyprus Popular Bank (Laiki) opened with some half an hour delay apparently due to soft ware problems. Depositors have been waiting outside with suppressed anger.

According to latest information, Bank of Cyprus apparently decided to proceed to a +-35% haircut on deposits above 100,000 euro. The final decision will be taken after the bank recapitalization.

The most clever have already withdrawn their money before the crisis peak. According to European Central Bank, deposits in Cypriot banks decreased by 2.2% in February. cypriot bank deposits totalled 46.6 billion euro in February. One billion euro left the banks. Decrease was at similar rate as compared to January.

No data available to withdrawals in March, before the banks closure.

sources: Cypriot, Greek & international media and Twitter #Cyprus

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One comment

  1. As reported by Bloomberg today

    The European Union should fast- track rules on creditor writedowns in bank failures, after losses imposed on depositors and senior creditors in Cyprus roiled markets, a German-led bloc said.

    Germany, Finland, the Netherlands and Denmark say the rules should be phased in by 2015 rather than in 2018, as the European Commission has proposed, according to a briefing paper prepared for March 21-22 technical meetings in Brussels. The four say investors are anticipating the new regime and delays could interfere with that process.

    This can only mean one thing. cyprus was not an accident waiting to happen. Cyprus was not even a test run for things that may come. Cyprus was a predetermined act of financial terrorism to scare and establish a case for forcing these rules through, on the back of fear. This suggestion to fast-track rules suddenly throws light on the whole 9 months pregnancy of the Cyprus bailout request made in June last year. Nine months to biuld up the required levels of fear, and then push through the “inevitable” medicine…

    It is worth noting that the same article states that the various peoples in Europe have pumpted in no less than 1.5 trillion Euor into private banks which bancrupted themselves through reckless lending and criminal neglect in their management systems.

    the people queueing in Cyprus today are paying for this, together with everybody else in Europe. The bankers get bonusses for a job well done…