Cyprus Prepares Money Controls Before Banks Reopen
March 27th, 2013Via: AP:
Cypriot authorities are preparing limits on how much money depositors can take out of their accounts a day before banks are set to reopen.
A banking official said Wednesday — on condition of anonymity because the measures have yet to be officially announced — that they include restrictions on large-scale money transfers from the country’s two largest lenders to avoid a run.
But authorities are looking to raise the daily withdrawal limit from 100 euros to 300 euros (from $130 to $386), while payroll payments will be allowed in order to help businesses.
The restrictions will be kept for at least a week.
Zerohedge has this bit about the Russian Olirachs getting their cash out and leaving the small savers to swing:
On Monday we reported the very disturbing news that despite the ongoing liquidity blockade, capital controls and (somewhat) closed Cyprus banks, one particular group of people – the very same group targeted to prompt this whole ludicrous collapse of the island nation – Russian Oligrachs had found ways to bypass the ringfence and pull their money out quickly and quietly. We said that, if confirmed, “If we were Cypriots at this point we would be angry. Very, very angry.” Turns out the Cypriots did become angry, and the questions are finally starting. As Spiegel reports, the Cypriot Parliament, which may or may not last too long once the banks reopen tomorrow and the people realize that in a fractional reserve banking system, those deposits you thought were there… they are gone, poof, has begun investigating the capital flight that may means the destruction of Cyprus has been for nothing. Sadly, it is now too little, too late.
From Spiegel:
Banks have been closed and accounts frozen in Cyprus recently. Nevertheless, large amounts were moved out of the country’s crippled financial institutions on the eve of the bailout package. Lawmakers are suspicious and are investigating both the government and the Cypriot central bank.
From here: http://www.zerohedge.com/news/2013-03-27/furious-cyprus-begins-investigating-who-breached-capital-controls