Cyprus banks have reopened, but just as I suspected, (knew) there are very oppressive restrictions on how much money can be withdrawn by depositors. The maximum daily amount is only 300 euros, but even that amount could be restricted further should the masses take full advantage of these maximum withdrawal amounts for the foreseeable future.
Those accounts over 85,000 euros have been frozen, and a very large percentage, up to 40 per cent of those deposits, will be stolen by the state in order to bail out the defunct banks. In addition, only a very limited amount of money is allowed to leave the country, guaranteeing that no transfers of accounts will take place. This just gives the Cyprus government the ability to raid more accounts as time passes.
It will be important to watch what happens in the next few weeks as this continued theft occurs. Tempers will flair, and in my opinion, sooner or later, civil unrest and possible violent riots could ensue. In addition, as this unfolds, many in Europe may attempt to move their own money out of the banks, and that would expose the insolvency of that entire system. This is a slippery slope that will most likely lead to more crisis in the banking sector of Europe and beyond!
Some of the things happening include but are not limited to:
- Armed police and security staff on guard over fears of a run on deposits
- Banks will be open for six hours today from 10am GMT (noon local time)
- Maximum cash withdrawal limit has been set at 300 euros (£250) per day
- Travellers leaving country can only take equivalent of 1,000 euros (£850)
- Curbs will be in place for at least seven calendar days and reviewed daily
- OAP: ‘I feel sense of fear and disappointment having to queue like this’
- Cypriot President slashes his own salary by 25% in show of solidarity
- The stock market will remain closed today ‘in order to protect investors’
- Banks shut since March 16 as politicians struggled to secure EU bailout