28 March 2013

CYPRUS / EU / IMF: Nicosia Suffers Capital Controls...But For How Long?

    After nearly 2 weeks...most banks in Cyprus reopened this afternoon...under newly imposed 'capital controls.'
     With tight security...banks were restocked with billions of euros.
     No bank runs were reported.
     Crowds were orderly...but all withdrawals are limited to 300 euros.
     People exiting Cyprus can only take 1,000 euros with them...and officials will confiscate amounts above that. 
     The foreign minister claims the controls limiting withdrawals, transfers and cash in and off the island will last only 30 days.
      ALSO: If the past is any guide...it could take years to fully wean the island off capital controls.
      5 years after its 2008 financial meltdown...Iceland still has its capital controls in place.