Cyprus businesses hurt as banks stay shut
NICOSIA, Cyprus — Cypriot businesses were under increasing strain to keep running on Tuesday, when financial authorities stretched the country's bank closure into a second week in a harried attempt to stop depositors from rushing to drain their accounts.
Cyprus's Central Bank governor, Panicos Demetriades, said “superhuman efforts are being made” to open banks on Thursday.
“Temporary” restrictions will be imposed on financial transactions once the banks do open, he said, but he would not specify what they would be or how long they would be in place.
“We have to restore the public's trust in banks,” he said.
Finance Minister Michalis Sarris said the restrictions would help stem any mass deposit withdrawal that is “bound to happen” and that they would be removed in a “relatively short period of time.”
“I think every day (banks) are not open creates more uncertainty and more difficulties for people, so we would like to do our utmost to make sure that this new goal that we have set will work,” he said.
All but two of the country's largest lenders had been due to reopen on Tuesday, since being shut on March 16 to stop savers from withdrawing all their money while politicians figured out how to raise the funds necessary for Cyprus to qualify for an international bailout.
However, late Monday, authorities announced that the bank closures would be extended, giving officials more time to initiate a major overhaul of the banking sector and devise capital controls to limit the amount of money that can be taken out of accounts.
“We have to all understand that we live in very critical times. Officials of the government and the Central Bank are working day and night,” Demetriades said.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Military draftees ignore Ukraine’s call to arms
- Employees of Mercer County-based manufacturer among missing in Nepal
- Nepal quake: More than 1,800 dead, history razed, Everest shaken
- Mexicans pin hopes on anti-corruption measures approved by Congress
- Australians, Kiwis mark centenary of bloody battle
- U.S.-backed rebels seize town, cut off land supply route to Assad forces in Syria
- Deadly earthquake devastates Nepal, triggers Mount Everest avalanche
- Italy marks anniversary of its rebellion against fascism
- Man who landed drone on Japanese PM’s office surrenders
- Fighting, gasoline shortage intensify Yemen crisis
- Senior officials are toppled in China’s anti-graft campaign