Cyprus banks closed until March 21st

Cyprus’ central bank has announced that the nation’s banks will stay closed until Thursday, March 21, as fears mount of a bank run.

Cyprus’ banks were closed for a scheduled Bank Holiday on Monday, something that allowed the country to try to implement a levy on savers’ deposits.

That move triggered unease among depositors in Cyprus, where cash machines soon ran out of funds.

It had earlier unnerved investors, sending shares and the euro lower.

The EU and IMF want all bank customers to pay a levy in return for a bailout worth 10 billion euros ($13 billion).

Spanish and Italian markets were down 2%, with bank shares the hardest hit.

The euro lost 1% against both the pound and the dollar, leaving it at 85.6p and $1.295 respectively.

Cyprus’ central bank has announced that the nation’s banks will stay closed until Thursday, March 21, as fears mount of a bank run

Earlier, Japan’s Nikkei 225 index fell 2.7%, while Hong Kong’s Hang Seng and Australia’s ASX 200 dipped 2%.Many major banks in Italy, France and Spain, some of the eurozone’s most indebted countries, were down between 4% and 5%.

In France, Credit Agricole and Societe Generale were the worst affected, losing about 4.5%, while Spain’s BBVA lost a similar amount.

In Germany, Deutsche Bank was down 3%, while Commerzbank was 1.3% lower.

Some investors think the Cyprus plan could prompt depositors elsewhere, particularly in Greece, Portugal, Ireland, Italy, Greece and Spain, to withdraw their funds

However, the European Central Bank board member, Joerg Asmussen, said he did not think Cyprus’ problems would spread to other eurozone countries: “I do believe that the situation of Cyprus and the Cypriot banking sector is indeed unique.”

Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Spain: At Least 158 Killed In The Country’s Worst Flooding Disaster

At least 158 people have died in Spain's worst flooding disaster in generations. On October…

2 days ago

Russia Fines Google $20,000,000,000,000,000,000,000,000,000,000,000, Surpassing Global GDP

Google has been fined two undecillion (a two followed by 36 zeroes) roubles by a…

2 days ago

Financing Your Home Remodel: 7 Tips for Success

Embarking on a home remodel is an exciting journey, promising enhanced comfort, increased property value,…

2 weeks ago

Donald Trump Serves Up McDonald’s Fries While Kamala Harris Celebrates 60th Birthday with Church Choir

The US presidential candidates continued to campaign across key swing states on October 20. Footage…

2 weeks ago

America PAC: Elon Musk Promises to Award $1M Each Day to Swing States Voters

Elon Musk has said he will give away $1 million a day to a registered…

2 weeks ago

Canada Expels 6 Indian Diplomats Amid Khalistan Row

India and Canada have decided to expel their top envoys along with other diplomats as…

3 weeks ago