Banks in Cyprus will remain closed on Thursday and Friday as the euro zone country tries to avoid a financial meltdown having rejected the harsh terms of a European Union bailout that aim to punish local and Russian savers.
With Monday a public holiday, the move effectively closes lenders until Tuesday, March 26.
The Eurogroup decision on Friday night to attach a 5.8 bln euro “bail in” imposed on depositors to a 10 bln euro bailout plan, was rejected by parliament and banks have remained shut from Tuesday, causing a strain on ATMs at local branches.
However, international transfer service MoneyGram, operated by the Post Office, said it was open for businesses and funds could be sent and received to and from overseas students and foreign workers “in just 10 minutes”.
However, these transfer come at a cost. Commissions range from 1.5% to 6% on cash transfer of small amounts.
Meanwhile the Employers and Industrialists Federation (OEV) has urged parliament to urgently approve a bail in plan that would be based on “own funds”, suggesting the reintroduction of the levy on savings.
“WE need to safeguard our banking sector as the business sector is running dry of funds and is facing difficulty to make payments.”
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