Despite harsh terms being imposed on orders of international lenders to get a 10 billion euros ($13 billion) bailout, Cyprus will not quit the Eurozone, newly-elected President Nicos Anastasiades said, even though he had campaigned against them.
Uninsured depositors with more than 100,000 euros could lose up to 80 percent of their money that’s being confiscated by the government to come up with 5.8 billion euros ($7.5 billion) as part of the deal with the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB).
After being closed for two weeks to prevent a run on the banks as the government was negotiating with the Troika, the banks are open again but with strict limits on withdrawals. Credit institutes are subject for at least a month to strict limits on cash withdrawals to prevent money from draining out of the economy after a controversial bailout was agreed between Nicosia and the Eurozone.
Small crowds gathered on March 29 in front of a number of branches of Laiki Bank (Popular bank), the second credit institute in the country after the Bank of Cyprus, which will in part absorb Laiki after it winds down. Cash withdrawals have been limited to 300 euros ($385) per person and transfers abroad cannot exceed 5,000 euros ($6,4000) a month so that depositors can’t clean out their accounts after losing trust with the banks.
Those traveling abroad even for long periods of time cannot bring more than 1,000 euros ($1,300) in cash or their money will be seized.