Cyprus Banks To Stay Closed Until Tuesday: Central Bank

[Berlin Expat]

Source: Straits Times

Banks in debt-hit Cyprus will stay closed until at least Tuesday, a Central Bank official said, after the authority issued a decree stating banks will not open their doors on Thursday and Friday.

Read more: http://www.straitstimes.com/breaking-news/money/story/cyprus-banks-stay-closed-until-tuesday-central-bank-20130321

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This confirms what my Istanbul-based friend told me last night, though it was only a rumor at that time spreading through the financial grapevine.

Tough times ahead for Cyprus. So far, the Russians have said, "Nyet" to any deals; if they can't swing something soon, looks like Cyprus will heading back to Brussels hoping the EU deal is still valid.

[BlueStreak]

1. So the Germans now understand what it is like to deal with crazy teabaggers

The whole point of the Euro thing (evolved under various names: ECC, EC, EU) was to try to compete against the US. Well, 20 years later the "United States of Europe" is pretty much at its end.

It turns out there really are a bunch of states that are less educated, less productive, and more costly to support. Yeah, we knew that. We've been carrying ours around for 150 years.

Good luck with your teabaggers, Europe.

[slackmaster]

2. That will make the "holiday" a total of 11 days with no banking services for Cypriots

It's a sad situation.

[Berlin Expat]

3. ATM's are still working but

as far as any transactions more sophisticated than that, well, they're SOL. Apparently, the Central Bank of Cyprus is drawing up capital controls to be imposed when the banks re-open. I could be wrong, and I'll have to ask my friend in Istanbul what he's hearing over the next few days, but my gut tells me the capital controls are going to be pretty draconian. North Cyprus has imposed controls already on money coming from the South to the banks in the North.

[quadrature]

6. ATMs have withdrawl limits

so you cant clean out a big account

[Berlin Expat]

7. Yeah....maybe a small account,

with under €400 or something on hand, but that's about it.

If you've got €500,000, well, that's a lotta trips to the ATM! I wonder what the capital controls are going to look like? I asked my friend in Istanbul, and he said he'll keep me posted. He agreed with my assertion than any capital controls are likely to be quite stringent.

[dixiegrrrrl]

8. Cyprus had a pretty bad "Plan B", it appears:

The so-called troika of the European Commission, European Central Bank and International Monetary Fund is also set rejected Cyprus's "plan B" which proposed raiding the country's pension funds and turning them into government bonds to raise money to secure a bailout.

http://www.cnbc.com/id/100571290

The same idea has been floated in the US for the past few years...making 401-k deposits go into Treasury bills only.

[Berlin Expat]

9. That's a pretty lousy "Plan B"

and the EC/ECB/IMF troika rightly rejected it, in my opinion.

[dipsydoodle]

10. Its also possible that none of their banks will ever reopen.

.

[quadrature]

11. welcome news

is there any downside?

[dipsydoodle]

12. The population of Cyprus would lose considerably more just 10% max. of their deposits

Stores there have already stopped accepting cheques which may never be honoured.

Still welcome news ?

[quadrature]

14. Cyp banks were paying7% interest,

at a time when ten-year US treasuries pay
less than 2%.

on top of that, the major industry of Cyprus
seems to be crime.

am I suppose to feel sorry for these people?


or not, please enlighten me.

[aquart]

4. Banks vs. people.

[Berlin Expat]

5. True enough.

Like I said in my OP, I think the Cypriots will be back in Brussels by this weekend hoping the deal is still good. Then they'll ram it through the parliament.

That's if the Russians don't pony up with some kind of package of their own.

[Paul E Ester]

13. A week without access to cash.

Not nice to Grandma.