Wednesday, 27 March 2013

First time since the euro's 1999 launch, a member country will restrict how much money can cross its borders.

Preparing to open its banks for the first time in nearly two weeks, Cyprus took the unprecedented step Wednesday of setting limits on the movement of cash out of the country to other eurozone states.
For the first time since the euro was launched on Jan 1, 1999, a member country will restrict how much money individuals and companies can take across its borders.

The tiny island nation is putting the extensive measures in place to prevent a run on its banks when they reopen Thursday for the first time since March 16.
Cypriots have been queuing at cash machines since then as it became clear that deposits would be raided as part of a bailout by the European Union and International Monetary Fund.
Security company G4S said it would provide over 150 extra security staff on Thursday at the request of the Cypriot banks to support additional cash deliveries.
Cyprus was brought to the brink of financial collapse and possible exit from the eurozone by its two biggest banks -- Bank of Cyprus and Popular Bank -- which together lost 3.5 billion euros on Greek government debt, wiping out a third of their combined capital.

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