This file photo shows people standing in line in front of an ATM to withdraw their money in Cyprus.
Cyprus will reopen its banks after nearly two weeks of closure amid ongoing negotiations on a bailout proposed by the European Union and popular dissatisfaction over the deal.
The banks, which have been closed since March 16, are expected to reopen on Thursday amid tightened security measures.
Cypriot Finance Minister Michalis Sarris has imposed temporary limits on daily cash withdrawals, allowing an amount of 300 euros only. Sarris also ordered travelers not to take more than 1,000 euros out of the country. A ban has been imposed on cashing checks as well.
The banks in Cyprus were shut down nationwide to prevent cash withdrawals, prompting people to form long lines at cash machines, which only dispense a lowered daily amount of 260 euros for each individual account.
Nicosia secured a 10-billion-euro ($13-billion) bailout deal on March 25 from the EU, the ECB, and the IMF, which included a tax of up to 40 percent on deposits of over 100,000 euros in the country’s two biggest banks, namely the Bank of Cyprus and Laiki Bank aka Cyprus Popular Bank.
People in Cyprus have taken to the streets to protest the bailout deal. The protesters gathered outside the parliament in the capital, Nicosia, on March 23.
Some economic experts say that the 10-billion-euro bailout package would save Cyprus from bankruptcy and possibly guarantee its future in the 17-nation eurozone.
SZH/HJL
