The Cyprus Lie Changes Again: Capital Controls Will Be Present After All
In an unsurprisingly supportive tone for the ECB and the Eurogroup, Cypriot Central Bank governor Demetriades says:
- *DEMETRIADES SAYS SUPPORTED FIRST EUROGROUP PROPOSAL ON CYPRUS, and
- *DEMETRIADES SAYS ECB DOING ITS JOB RIGHT ON CYPRUS BANKS
But, it seems, in recognition that there are 'leaks' in their current capital control scheme, Demetriades has just admitted that:
- *DEMETRIADES SAYS CAPITAL CONTROLS TO BE SAME FOR ALL BANKS
- *DEMETRIADES SAYS CAN'T GO INTO MORE DETAILS ON CAPITAL CONTROLS
Not only that but he clarified that if the deal had not happened then ATM limits would be EUR30 per day not the current EUR100 per day. Now that all the Russian money is gone, the only question remains just how big the capital shortfall will be - earlier we learned that it will be at least EUR2.5-3 billion.
The EUR is not happy...