“NICOSIA, Cyprus (AP) — Banks across Cyprus remain locked Tuesday after financial authorities extended the country’s bank closure, fearing worried depositors will rush to drain their accounts. The shut-down is hammering businesses, which have been without access to their funds for more than a week.
All but two of the country’s largest lenders had been due to reopen Tuesday, after being shut since March 16 while politicians figured out how to raise the funds necessary for Cyprus to qualify for an international bailout. Under the deal for a 10 billion euro ($12.94 billion) rescue clinched in Brussels early Monday, Cyprus agreed to slash its oversized banking sector and inflict hefty losses on large depositors in troubled banks.
After initially saying most financial institutions would reopen Tuesday, the country’s Central Bankmade a surprise reversal just before midnight, announcing all banks would remain closed until Thursday.
ATMs have been operating throughout the closure, but many have quickly run out of money. A daily withdrawal limit of 100 euros has been imposed on ATMs of the two largest lenders, Bank of Cyprusand Laiki. An increasing number of businesses have stopped accepting credit or check payments, insisting on cash only.
The bank closures have hammered businesses, who have found themselves unable to pay suppliers or fulfill orders. The retail market is sharply down too, shop owners say, with customers unwilling to spend on anything but the basics while they have limited access to cash.”
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