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March 29th, 2013 
Peter Nolan
Updated
The president of Cyprus has thanked his people for the orderly way they went about their business when banks reopened overnight.
The country’s banks were closed for almost two weeks while the government negotiated a 10 billion euro ($13 billion) international bailout, the first in Europe’s single currency zone to impose losses on bank depositors.
Bank staff turned up for work early for the midday opening as cash was delivered by armoured trucks, with uniformed security guards on duty.
Cypriots lined up at branches around the country, but despite fears of unrest, the day was generally calm.
“We have shown that not only do we want to drag our country out of this difficult position, but that we will do it,” a statement from the presidency said.
President Nicos Anastasiades later tweeted: “I would like to thank the Cypriot people for their maturity and collectedness shown in their interactions with the Cypriot Banks.”
How the bailout unfolded:
March 16, 2013: Cyprus becomes the fifth nation to ask for a eurozone bailout.
March 17, 2013: The Cyprus government delay a planned emergency session of parliament. Banks remained closed.
March 19, 2013: Cypriot MPs reject the bailout terms. More than 50 per cent voted against a bank levy and 19 abstained. Cyprus turns to Russia for help and sources suggest they could approach Middle East investors.
March 20, 2013: Cyprus Central Bank announces banks would remain closed until the following week. The government rushes to create Plan B while the finance minister asks Russia for a further 5 billion euros.
March 21, 2013: The European Central Bank issued Cyprus a deadline of 25 March warning that unless an EU-IMF programme was in place it would cut off its emergency liquidity assistance.
March 22, 2013: proposals for a bank levy are returned to the table suggesting a levy of 10 per cent on deposits exceeding 100,000 euros. The Cypriot parliament backed the plan.
March 24, 2013: The country’s two biggest banks ration the amount of money savers can withdraw on a daily basis. Cyprus was warned that unless it bowed to demands it faced leaving the eurozone.
March 25, 2013: a last-minute 10-billion euro bailout was agreed. The deal will safeguard small savers, inflict heavy losses on uninsured depositors and ensure the country remains in the eurozone.
March 27, 2013: The Bank of Cyprus refuses to accept the resignation of its chairman and four other board members. People of Cyprus protest outside parliament.
March 28, 2013: Banks expected to re-open. Locals describe the mood on the streets as “like a warzone” as withdrawal limits of 300 euros are set.
For at least four days, bank account holders will not be able to cash cheques, carry more than 1,000 euros ($1,200) from the country in cash and they cannot withdraw more than 300 euros ($370) per person.
These are among a raft of measures imposed to prevent a run on the banks.
The central bank is reviewing all commercial transactions over 5,000 euros ($6,100) and scrutinising transactions over 200,000 euros ($246,000) on an individual basis.
The capital controls decree was taped to the windows of bank branches and staff handed out copies to customers.
In the capital Nicosia, there was relief, but some apprehension about the future.
“You’ve no idea how much I’ve been waiting for this,” said 64-year-old pensioner Froso Kokikou, waiting in line at a branch of the Laiki bank.
“I feel a sense of fear and disappointment having to queue up like this; it feels like a Third World country, but what can you do?
“This is what they imposed on us and we have to live with it.”
Many of those waiting in line were elderly people, who said they had run out of cash because they did not have bank cards.
As a result of the financial situation in his country, Mr Anastasiades has taken a 25 per cent pay cut, while cabinet ministers’ pay will go down by 20 per cent, an official said.
The Central Bank of Cyprus says savers from other euro zone countries withdrew 18 per cent of their deposits from the stricken island in February, as talk of a tax on bank accounts gained ground.
Overall private sector bank deposits in Cyprus fell by 2.2 per cent to 46.4 billion euros last month, after a similar drop in January.
To help the Cyprus banks weather the crisis, the European Central Bank flew in 5 billion euros ($6.4 billion) in cash overnight from Frankfurt, a German newspaper reported.
The stock exchange said it would remain closed on Thursday.
ABC/wires
Topics:
international-financial-institutions,
international-financial-crisis,
banking,
cyprus,
european-union
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Source Article from http://www.abc.net.au/news/2013-03-29/cyprus-latest/4601138
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