Banks staff, armed guards, police, journalists, stockbrokers, they are all ready to record the reopening of banks in Cyprus at 12 o’clock noon today, March 28th 2013. Banks will open again with strict capital control restrictions after almost two weeks.
Employees are already inside the banks preparing the reopening. Banks will operate from 12 noon to 6 p.m.
Armed guards are reportedly outside to prohibit ‘troubles’.
Clients seem to be calm as due to the strict rules they won’t be able to withdraw more than 300 euro per person and bank.
30 minutes before banks opening – client gather (picture via @MariaKagelidou)
Journalists and camera people queued on Thursday morning to capture the moments of the banks reopening.
Capital restritions on banks doors (picture via @emmaMurphy)
Strict capital controls are imposed – officially for seven days – so that a bank run will be averted as uninsured deposits over 100,000 euro will undergo a massive ‘haircut’ under the Cyprus-Eurogroup 10-billion-euro bailout deal.
Capital restrictions in short:
Limit cash withdrawals to no more than €300 per day, ban the cashing of cheques and bar businesses from transferring money abroad unless they can show it is for imports.
The island’s central bank will review all commercial transactions over €5,000 and scrutinise transactions over €200,000 on an individual basis. People leaving Cyprus can take only €3,000 with them. (euractiv)
Five billion euro arrived Wednesday afternoon in Cyprus via airplane to supply the banks with fresh cash. The money came from Frankfurt from the treasuries of Emergency Liquidity Assistance (ELA) of the European Central Bank.
Less than an hour before the opening reports from the island say, journalists outside the banks are much more than the customers.
While the restrictive measures on capital movements are set for seven days, European Commission said it will monitor the issue and eventually extend them.
The Commission will monitor closely with the Cypriot authorities, other Member States, the ECB and the EBA the implementation of the imposed restrictive measures on capital movements. These restrictive measures will remain in force for 7 days. The Commission will continue monitoring the need to extend the validity of or revise the measures. The Commission will insist at all times that any restrictive measures are strictly proportionate to the legitimate objectives of preventing the immediate risk to the financial stability of Cyprus and strictly limited in duration to the time necessary for that purpose. (EUCommission full statement)
Much more than the average bank customers, businessowners are in high distress to have to see their assets being seized by the banks they trusted.
more pictures: newsit
