NICOSIA, (Reuters) – Cyprus trucked out cash for its banks last night to prepare them to reopen to a siege by anxious depositors, with tough controls imposed on the use of currency to avert a bank run as a result of its harsh rescue deal.
The Central Bank said banks would open their doors at midday (1000 GMT) on Thursday after nearly two weeks when Cypriots could get cash only through limited ATM withdrawals, while the government hashed out the rescue to stave off financial ruin.
Among measures imposed to prevent savers from stripping the bank vaults clean when the doors open: withdrawals will be capped at 300 euros ($380) per day, travellers may take no more than 3,000 euros abroad per trip, and funds can be sent abroad only by businesses that can prove they are paying for imports.
The European Central Bank delivered extra banknotes to Cypriot banks on Wednesday evening to meet demand, a source familiar with the situation said. The ECB declined to comment.
