Cypriot savers join the Chain Gang
No Bank run in Cyprus, its more of a bank shuffle
When the Cypriot banks re-opened for restricted opening hours, there was no bank run because of the draconian regulations that limit withdrawals to loose change levels. The big question now is “when will the controls relax?” The problem for the Cypriot Government is that any relaxation will see a run on the banks, but as long as the current restrictions last the tourist industry will be crippled.
For many smaller savers its no longer a problem because they have discovered that accounts above £85,000 have been robbed of around 80%, the extra 70% paying for not scalping accounts below £85,000. This means that there may be grounds for legal action, not only because of the theft, but because it can now be argued that it is racist, most seriously affecting the elderly from other parts of Europe who decided to retire to Cyprus. Then there should be questions about how members of the Government smuggled their cash out before the banks closed.