Cyprus has no intention of leaving euro currency

Cyprus President Nicos Anastasiades says his country has no intention of the leaving the European single currency.

Nicos Anastasiades said: “In no way will we experiment with the future of our country.”

The president said the financial situation was “contained” following the 10 billion euro bailout deal with the EU and IMF.

Cypriot banks opened on Thursday, March 28, for the first time in nearly two weeks amid severe new rules imposed as part of the bailout deal.

Queues formed of people trying to access their money, but the mood was generally calm.

By Friday, banks had returned to their normal working hours and there were no longer reports of big queues.

“We have averted the risk of bankruptcy,” Nicos Anastasiades said on Friday.

“The situation, despite the tragedy of it all, is contained.”

The president told a meeting of civil servants: “We have no intention of leaving the euro.”

However, Nicos Anastasiades accused other members of the eurozone of making “unprecedented demands that forced Cyprus to become an experiment”.

Cyprus needs to raise 5.8 billion euros ($7.4 billion) to qualify for the bailout, and has become the first eurozone member country to bring in capital controls to prevent a torrent of money leaving the island and credit institutions collapsing.

As well as a daily withdrawal limit of 300 euros, Cypriots may not cash cheques and those leaving the country will only be allowed to take 1,000 euros with them.

Payments and/or transfers outside Cyprus via debit and or credit cards are allowed up to 5,000 euros per person per month.

Depositors with more than 100,000 euros will see some of their savings exchanged for bank shares.

Foreign Minister Ioannis Kasoulides said on Thursday that such controls could gradually be lifted over the course of the month.

But many economists predict the controls could be in place for much longer.

Cyprus capital controls

• Daily withdrawals limited to 300 euros
• Cashing of cheques banned
• Those travelling abroad can take no more than 1,000 euros out of the country
• Payments and/or transfers outside Cyprus via debit and or credit cards permitted up to 5,000 euros per month
• Businesses able to carry out transactions up to 5,000 euros per day
• Special committee to review commercial transactions between 5,000 and 200,000 euros and approve all those over 200,000 euros on a case-by-case basis
• No termination of fixed-term deposit accounts before maturity