Mar 27, 2013

Cyprus Making Efforts To Reopen Banks


The head of the Cypriot central bank has said that "superhuman" efforts are being made to open the country's banks on Thursday.

Banks in the country have been shut for more than a week as a controversial bailout was negotiated, which will see depositors take losses.

"We have to restore the public's trust in banks," Panicos Demetriades said.

Meanwhile, the BBC has learned that Cyprus is planning to impose a weekly limit on cash withdrawals.

The country's draft capital controls include export limits on euros and a ban on cashing cheques, said Newsnight economics editor Paul Mason.

In addition, fixed-term deposits will have to be held until maturity.

"A superhuman effort is being made for the banks to open on Thursday," Mr Demetriades said. He also confirmed that "temporary" capital controls will be imposed on the island, but he would not spell out the restrictions and how long they would last.

Banks have not been open since 15 March. Their reopening had been ex

pected after Cyprus agreed a deal with the International Monetary Fund (IMF) and the European Union (EU) that releases 10bn euros in support.

The Cypriot authorities had previously said all that but the biggest two banks would open on Tuesday, but they have remained shut while the finer details of capital controls are handled by the Cypriot central bank.

0 comments:

Post a Comment

Share

Twitter Delicious Facebook Digg Stumbleupon Favorites More