Cyprus braces for reopening of banks

PanARMENIAN.Net - Banks in Cyprus are to reopen on Thursday, March 28 at 10:00 GMT, 10 days after they closed to prevent a bank run as a controversial bailout was negotiated, BBC News reports.

Banks will open their doors between noon and 18:00 local time (10:00-16:00 GMT), the Cypriot central bank said.

Customers will also be limited to withdrawing 300 euros ($383) a day, to prevent everyone fleeing with their savings.

Earlier, the boss of the Bank of Cyprus was sacked. "I am telling you that all banks are definitely going to open tomorrow," the Cypriot central bank's Aliki Stylianou said.

It follows several false announcements of when bank customers would be able to access their funds.

Capital controls are to be imposed as Cyprus seeks to raise 5.8bn euros to qualify for a 10bn-euro bailout from the European Union, European Central Bank and the International Monetary Fund, the so-called troika.

Cyprus Finance Minister Michalis Sarris announced a long-awaited series of capital controls. These include the 300-euro daily withdrawal limit, and a ban on cashing cheques.

Sarris cited the "lack of substantial liquidity and significant risk of deposits outflow, with possible outcome the collapse of the credit institutions" as the reasons for the restrictions.

Depositors in Cypriot banks with more than 100,000 euros could see 40% of their funds converted into bank shares, while those with less than 100,000 euros will not lose any funds - but face limits on what funds they can access.