Wednesday, March 27, 2013

Cyprus works to avert run on banks.

 Cyprus has been preparing capital controls to prevent a run on the banks when they reopen for business tomorrow after being closed for almost a fortnight. Russia has warned Cyprus not to make the controls too onerous. Uninsured depositors at Laiki bank, which is being shut down, will probably lose 80% of their cash, the rest of which could take years to return, while those at Bank of Cyprus could take a haircut of up to 40%.