Cyprus reopened banks on Thursday, first time in almost two weeks, after a decision to close the country’s banks amid fears of a massive outflow of cash. The local police had a hefty presence as they prepared to protect the banks, prevent riots and secure that the $6.3 billion cargo shipped from the European Central Bank - to meet depositors’ demands that enough cash was available - was delivered to the banks safely.
Under the bailout terms, the tiny island nation’s two largest banks will go through massive restructuring, impacting the country’s economy significantly. Earlier this week Cyprus and the Troika hammered out a deal, securing a $20.5-billion bailout. According to the terms, depositors with accounts over $130k on Cypriot bank accounts are required to chip in to foot the costs of the rescue package.
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