Cyprus Banks Reopen With Capital Restrictions

Thousands of customers are expected to visit banks in Cyprus as they open their doors after the longest enforced bank holiday in Europe's history. Queues grew outside branches across the country, but there were no signs of panic as employees limited the number of customers allowed in at any one time. Cash withdrawals and other
transactions are subject to tough restrictions, introduced by the country's Finance Ministry in an effort to avoid a run on the bank. The country's crippled banking system was effectively closed down on March 16 while the terms of the 10bn euro (£8.5bn) bailout were agreed and implemented. Large depositors face losses of as much as 40% of their savings as part of the deal, leading to fears that customers would attempt to withdraw large amounts of money when the banks reopened. As a result, strict capital controls include a withdrawal limit of 300 euros (£253) a day and a ban on cashing cheques. Travellers leaving the country can only take up to 1,000 euros (£845), or the equivalent in foreign currency, with them in cash - significantly less than expected. One customer queuing outside a bank in Nicosia expressed his frustration at the controversial bailout - which requires Cyprus to raise 5.8bn euros (£4.9bn). "They have stolen our money," he told Sky News. "I have been working for 60 years. I am 80 years old. I cannot work again for my living - they have cut the lot. "Our money, our social insurance - they have cut them. How are we going to live?" Police and security staff were deployed to maintain order at branches, and G4S employees worked to ensure cash machines were filled up overnight. The giant global firm was the contractor that failed to meet their promises over security at the London Olympics prompting the British military to step in. G4S's managing director in Cyprus, John Arghyrou, told Sky News: "I feel we have the resources, I feel extremely confident as a security company that we can undertake and meet the requirements of our customers." Some 180 guards were deployed to banks across Cyprus to work alongside police officers and other security firms. Mr Arghyrou added: "It is not really guarding it is assistance services ... but close co-operation with the police is essential." With just 860,000 people, Cyprus has around 68bn euros (£57bn) in its banks. This outsized financial system attracted deposits from foreigners but has struggled since investments in neighbouring Greece went sour. More follows...