Arab Today, arab today cyprus bank closure crippling business
Last Updated : GMT 12:42:36
Arab Today, arab today
Arab Today, arab today

Cyprus bank closure crippling business

Arab Today, arab today

Arab Today, arab today Cyprus bank closure crippling business

Nicosia - AFP

Cyprus closed its banks this week to avert a run on savings and secure a bailout for its near-bankrupt economy, but the move has dealt another blow to companies already hit by the global financial crisis. \"We cannot buy, we cannot sell,\" said Costakis Sophoclides, the director of a frozen goods company who usually goes to banks in order to pay his suppliers. \"A lot of my customers are hotels and restaurants... and we cannot supply them... I have 25 employees now but next week I will have no products in my stores. \"What will happen? We don\'t know when we will get paid and if we will get paid,\" said the businessman whose products are imported from Europe, including Germany and the Netherlands. Before dawn on Saturday, after about 10 hours of negotiations, the eurozone and the International Monetary Fund agreed to provide 10 billion euros ($13 billion) to bail out Cyprus. But under the deal, Nicosia had to come up with 5.8 billion euros of its own by imposing a one-off levy of between 6.75 and 9.9 percent on all bank deposits, sparking outrage among savers. With banks closed on Saturdays, Cypriots panicked and rushed to cash points, some of which were depleted within hours over the long holiday weekend before being refilled on Tuesday. Banks have remained shut for another two days as the government scrambled to drop the levy on deposits under 20,000 euros, but even that was flatly rejected by furious members of parliament. To prevent a run on the banks, the Cypriot authorities have also blocked online electronic funds transfers. -- Blow to confidence -- After being closed for six days, it is still uncertain when the banks will reopen. The authorities are working on legislation to restrict the outflow of cash from the country once they do open their doors again, and splitting the sector into good and bad lenders, state radio reports.\"I can\'t make any transactions with my account,\" lamented Gatienne Thibaut, who runs a French restaurant. \"I will lose the confidence of my suppliers in France. They\'ll say \'Even if she wants to pay me, she can\'t\'. \"We have been taken hostage when we have nothing to do with it,\" she said furiously. Alexandros Mitides, who runs a family business that sells marble, said he had already been hit hard by the crisis over the \"last two, three years.\" \"I used to have 15 employees for many years and today only two, and they work half days. \"Nobody is paying,\" he said, adding: \"We are just trying to survive.\" Co-operative Societies chief Constantinos Lyras said the closure of banks is crippling the Cypriot economy. \"The more days the banks remain closed, the more the uncertainty increases,\" he told the official CNA news agency. \"My opinion is that banks should open as soon as possible. I hope the right decisions are taken, because if the haircut is not approved, without any other solution there will be heightened panic.\" Although shoppers have been able to use credit cards for purchases at supermarkets and fuel stations, some institutions are beginning to demand payment in cash. This was the case in at least one cafe in the city centre, where many shopfronts are shuttered and plastered with \"For Rent\" signs. In addition, petrol stations were also accepting only cash payments, Stefanos Stefanou, head of the association of service station owners, told the Sigma private television channel on Wednesday. The Cypriot economy had flourished since the 1990s, but contracted by 2.3 percent in 2012.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today cyprus bank closure crippling business Arab Today, arab today cyprus bank closure crippling business

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 01:47 2017 Saturday ,25 February

Bank of Ireland reports 11-pct decrease in 2016 profits

GMT 21:27 2017 Wednesday ,22 February

Banks reject Saudi Telecom bid to resolve debt issue

GMT 15:19 2017 Wednesday ,22 February

Al Rajhi Bank delegation visits Aladdiyat Al Saudia

GMT 11:30 2017 Wednesday ,22 February

HSBC Mena profit falls on higher operating expenses

GMT 13:32 2017 Tuesday ,21 February

UAE Central Bank announces banking developments

GMT 05:09 2017 Tuesday ,21 February

Economy good, but homes in German cities
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday