Cyprus businesses hurt as banks stay shut

Businesses in Cyprus were under increasing strain to keep running on Tuesday after financial authorities stretched the country's bank closure into a second week in an attempt to stop depositors from rushing to drain their accounts.
By MENELAOS HADJICOSTIS Modified: March 26, 2013 at 9:52 pm •  Published: March 27, 2013
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Business update

Cyprus extends bank closures

Cypriot businesses were under increasing strain to keep running on Tuesday after financial authorities stretched the country's bank closure into a second week in an attempt to stop depositors from rushing to drain their accounts.

Cyprus's Central Bank governor, Panicos Demetriades, said “superhuman efforts are being made” to open banks on Thursday.

“Temporary” restrictions will be imposed on financial transactions once the banks do open, he said, but he would not specify what they would be or how long they would be in place.

Finance Minister Michalis Sarris told The Associated Press the restrictions would help stem any mass deposit withdrawal and that they would be removed in a “relatively short period of time.”

All but two of the country's largest lenders had been due to reopen Tuesday, after being shut since March 16 to stop savers from withdrawing all their money while politicians figured out how to get an international bailout.



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