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Mon Mar 18, 2013, 09:22 AM

Cyprus banks to be kept closed until Friday

to stave off bank run, says NYTimes..............

Cyprus’s Parliament on Monday delayed an emergency vote on a bailout plan for the second time in as many days as President Nicos Anastasiades faced trouble rounding up support among lawmakers.
A vote was scheduled for Tuesday at 4 p.m. local time, the Parliament announced, although there was the possibility it could be delayed until Friday.

As European stock markets faltered and the euro fell against major currencies, the government said it would also keep Cypriot banks shuttered until at least Friday, well beyond a bank holiday that was supposed to end Monday. The move was aimed at staving off a possible bank run.

The main euro zone blue-chip stock index fell 1.5 percent in afternoon trading, mirroring declines earlier in Asia, and Wall Street stocks were expected to open lower.

Mr. Anastasiades warned Sunday that a failure to pass the 10 billion euro, or $13 billion, deal could lead to a major shock, including “a complete collapse of the banking sector” and the possibility that the divided island nation would have to leave the euro altogether.

http://www.nytimes.com/2013/03/19/business/global/asian-markets-drop-on-latest-euro-concerns.html?_r=0

Could you get by if your bank was closed for a week?

10 replies, 972 views

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Response to dixiegrrrrl (Original post)

Mon Mar 18, 2013, 09:25 AM

1. This selective taxation of only certain assets is a very ominous trial balloon.


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Response to dixiegrrrrl (Original post)

Mon Mar 18, 2013, 09:32 AM

2. Could you get by if your bank was closed for a week ?

If they don't sort this some of their banks will fold so "their bank" would be closed - period. Account holders are protected under EU law against loss of first € 100,000 only - may now be € 110,000.

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Response to dipsydoodle (Reply #2)

Mon Mar 18, 2013, 10:42 AM

4. Who pays the account holders...and when?

Something interesting I found when I was reading up on the FDIC insurance...
There is no hard and fast rule as to when FDIC pays the depositor.
I read that the same time a couple years ago when FDIC was complaining it did not have enough money from the banks to cover all claims.

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Response to dixiegrrrrl (Reply #4)

Mon Mar 18, 2013, 11:05 AM

5. In the case of the UK for sterling accounts and other EU member states for euros

the amounts are guaranteed by the respective governments. I would think in some cases that would need nationalising and then liquidating banks as necessary. Spain nationalised seven of its largest saving and loans banks to protect the situation then borrowed €30 billion from the ECB to re-capitalise them and so improve their liquidity. In the absense of that action the banks would''ve had no funds whatsoever to lend which would've meant not even overdrafts. That had come about almost solely due to delinquent debt within Spain's construction and real estate industries.

Not sure when such guaranteed amounts are be physically paid nor how - no precedents yet. In the case of Cyprus without the bailout at least two major are expected fold almost immediately so maybe not long before we find an answer.

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Response to dipsydoodle (Reply #5)

Mon Mar 18, 2013, 11:29 AM

6. ty for your informative reply.

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Response to dixiegrrrrl (Original post)

Mon Mar 18, 2013, 09:36 AM

3. Yes.

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Response to dixiegrrrrl (Original post)

Mon Mar 18, 2013, 11:32 AM

7. Update - Cypriot banks to remain closed until Thursday

NICOSIA, Cyprus (AP) -- Cyprus banks will remain closed until Thursday as lawmakers try to amend a measure to raid bank accounts in the country.

Aliki Stylianou, a spokeswoman for Cyprus' central bank, says Monday's bank holiday has been extended by two days.

http://hosted.ap.org/dynamic/stories/E/EU_CYPRUS_FINANCIAL_CRISIS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-03-18-11-13-09

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Response to dixiegrrrrl (Original post)

Mon Mar 18, 2013, 12:16 PM

8. WOW. Friday? Now to all those that ridicule me for keeping 'cash on hand'. eom

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Response to dixiegrrrrl (Original post)

Mon Mar 18, 2013, 12:20 PM

9. When the banks reopen - has the limit on daily withdrawals been determined and disclosed?

I keep low balances in my personal and business accounts so I tend to visit the bank twice or so during the week. My small local bank has Saturday hours and I often visit on Saturday.

I suppose other people visit their bank to make withdrawals while I tend to visit to make deposits. A week long bank holiday would certainly inconvenience me and my business.

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Response to ms.smiler (Reply #9)

Mon Mar 18, 2013, 12:26 PM

10. There has been talk of limiting withdrawal amounts in Cyprus.

Situation is fluid right now, ideas are being floated, no definite decision on amount of withdrawals.
Bad enough that folks over there will be going without banking for a week, at a minimum.
No deposits, no withdrawals allowed.

The longer they keep the banks closed, the madder the customers will be, so I would expect a pretty good bank run at some point.

Never hurts to keep an emergency stash of money..some people suggest 30 day stash, others say longer is better.

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