Cyprus Banks Set To Reopen, To Serve As Glorified ATMs With A €300 Cash Withdrawal Limit

Tyler Durden's picture

Tomorrow Cyprus banks will reopen sometime around noon (they are supposed to close at 6 pm but likely will close far earlier). What does that mean? Apparently nothing much. Because according ot various newswires the withdrawal limit at all banks will be €300 per day. This means that all those daytrading wannabes who want to get stinking rich and just buy US stocks with "no risk", will be unable to buy even one riskfree (at least until last September) stock of AAPL per day!

In other words, all said "reopening" will do, is to allow physical branches to be used as glorified ATMs but with a very terrified and confused carbon-based teller on the other side (the same ATMs which a few days ago saw their limit reduced from €300 to €120). All other cash transactions will be strictly curbed, virtually no cash will be allowed to exit the island, and the what's more the government will ban the termination of the oh so ironically-named time deposits. This means that time deposits will now become "permanent deposits", even if within the €100,000 insured limit. The good news: credit card treansactions will be permitted when paying for goods and services anywhere on the island. Of course, electronic cash just happens to not be physical cash, which is why the bank is so cavalier with allowing people to access their own money. Well, electronic 1s and 0s-based money.

In other words, tomorrow's bank reopening means absolutely nothing (as ATMs had worked for the duration of the Cyprus bail-in crisis), and anyone who had hoped they could just walk in and withdraw their entire insured deposit up to €100,000 will be severely disappointed. Of course, those who had more than €100,000: Poof, it's gone, step aside please.

Oh well: such is life in the New Normal under capital controls, in which there is a unquantifiable premium for having physical cash over electronic.

Learn from it.

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Ahmeexnal's picture

This is an act of war against the people of Cyprus.

TruthInSunshine's picture

Come celebrate the Cypriotic post-banking holiday grand re-opening with us!

There will be food, fun & frivolity for all, with clowns (sponsored by G4S), sausages (shoved directly up your asses), fun rides (compliments of horses trampling warm bodies & armored paddy vans), and even late afternoon fireworks (so please leave your own at home)!


We treat you like fam-i-leee


Because that's the big tent EU way


So come on down & stew while you queue


For some paper fiat & a maybe a nice haircut, too



Ahmeexnal's picture

Confirmed deposit confiscation in Spain and France, as PM Rajoy and Hollande blabber about the safety of deposits as a result of massive outflows from bank accounts:

Spain's Prime Minister Mariano Rajoy and France's President François Hollande on Tuesday said that all accounts holding less than €100,000 were off bounds


Bank runs are accelerating!

ZerOhead's picture

I love this quote...

They said the measures taken in Cyprus — where accounts with more €100,000 were raided to help bailout the country's banks —  were "exceptional".

"This is an exceptional and unique case, which is being exceptionally applied to Cyprus," the Spanish prime minister said in the press conference.

Do these guys even think anymore before opening their mouths?

That's just like the Vatican saying sexual molestation of children under 9 is off bounds...

Exceptional job gentlemen... except for the exceptional part.

macholatte's picture



What happened to non-cash deposits in brokerage accounts? Were securities raided?

HobbyFarmer's picture

Had a lunch outing with about 8 close co-workers.  During a lul in the conversation, I brought up the fact that Cyprus banks have been closed over a week with a haircut announced for depositors and controls in place for withdrawing cash when the banks reopened.

This was followed by a long, awkward pause.  Nobody said anything, nobody had a clue what I was talking about nor (most likely) any idea that Cyrpus was a location and not a celebrity.  The conversation topic that started after I killed it?  Dancing with the stars.

Granted, most of the team that I support are female, but it was like a bad joke from ZH.

Nobody has a clue this is going on.  Nobody in the US (currently) cares.

We are doomed as a country.

I expect to survive quite nicely, however.

Ahmeexnal's picture

You should never place your money in the hands of bankers.

You should never place your money in the hands of your wife.

Miffed Microbiologist's picture

Mr miffed and I were at a financial advisor meeting my job provided for free. Mr miffed gave them a detailed description of our finances. They turned to me and asked how much I knew about the family financial situation. I told them I give my husband $4000/ month for the privilege sharing his bed and I don't give a rats ass what he does with it. I only require my agreed on gold purchase. Three guys just stared speechless at me. I think the thought they entered the Twilight Zone.


Ratscam's picture

not even Cyprus KPMG could answer that today in their summary.

Cyprus Developments A message from KPMG Cyprus
Dear Associates,
As you may be aware, the government of Cyprus and the Eurogroup finally reached an agreement in the early hours of Monday 25 March, for the bailout of the country’s banking sector. The agreement opens the way for Cyprus to sign a Memorandum of Understanding with the Troika (committee led by the European Commission, European Central Bank (‘ECB’) and International Monetary Fund) so as to make the necessary structural and other reforms required to reduce the public debt and improve efficiency within the system.
Although the agreement was widely condemned by experts internationally as being very onerous, particularly as the root cause of the problem was the haircut agreed by the Eurogroup on Greek government bonds in early 2012 (to which the two largest Cyprus banks were heavily exposed), the Cyprus government is confident that the bailout will allow the Cyprus economy to return to growth in the medium and long term.
The main terms of the agreement concern the two largest banks of the island as follows:
• All deposit holders of both Bank of Cyprus, the island’s largest bank, and Laiki Bank, the second largest bank, with balances of up to €100.000 will be fully safeguarded in accordance with the Deposit Guarantee Scheme (Directive 94/14/EC as amended by 2009/14/EC)
• Laiki Bank is to be ‘resolved’ by being separated into a ‘good’ and ‘bad’ bank. All non-performing loans as well as deposits that are not guaranteed (i.e. those above €100.000) will be transferred to this ‘bad’ bank which will carry out its course until it is eventually wound-up. Consequently, depositors with balances over €100.000 will not receive the full value of their deposits, although at this time the extent of the ‘haircut’ they will undertake is not known. The ‘good’ bank will receive all performing loans and deposits up to €100.000 and its operations will be transferred to the Bank of Cyprus where it will continue to operate as normal;
• Bank of Cyprus will be restructured, with large deposit holders (those with balances over €100.000) participating in the recapitalization of the bank by receiving shares in the bank in return for a percentage of their deposits to such an extent (expected to be in the region of 30% - 40%) that will result in a core tier 1 ratio for Bank of Cyprus of 9%;
• The Cyprus government will receive €10 billion which will be used to restructure the Government debt and proceed with implementing a program of structural changes including a privatization program and efficiency drive.
The ECB’s subsequent commitment to allow the Bank of Cyprus to continue to use the Emergency Liquidity Assistance mechanism whilst it implements its restructuring program should provide the bank the time it needs to implement the restructuring measures. This will bring much needed stability back to the market and will eliminate the uncertainty that has existed for some time.
KPMG is committed to working closely with all our clients that may have been affected by the above developments so as to overcome any problems that may have arisen. Special arrangements have been made to ensure that we are up-to-date on all developments and our clients’ needs are continuously presented to Government officials and decision makers. We encourage any clients that have been affected or that simply wish to discuss any matters in light of the above developments to contact one of our Partners or staff who are available to support in any way they can.
The aim of the Eurogroup is for Cyprus to reduce the size of its banking sector, and it is clear that the above measures will achieve this end. Nevertheless, the Cyprus government wishes to send a clear signal that the financial services sector and international business remain the top priority given the importance of this sector to the economy. Only very few measures expected to be applied with the signing of the Memorandum of Understanding will affect the international business sector, the most important of which being the expected increase of corporation tax from 10% to 12,5% and the introduction of a special 10% solidarity fee on passive interest earned from banks in Cyprus (that will be in place for a limited period).
The 2,5% increase in the corporate tax rate is still very competitive compared to other jurisdictions and is not expected to negatively affect international business in Cyprus in any significant way. Cyprus will still have one of the most friendly tax systems in Europe with no taxation imposed on the sale of shares, full participation exemption on dividend income, no withholding tax on dividends, interest and royalties, no thin cap rules, no exit charges, effective tax on royalty income of 2,5%, interest income being taxed only on a thin margin and so many other benefits including the very beneficial shipping regime.
The 10% solidarity fee, if finally introduced, will effectively reduce the current rate of return on deposits but the interest rate on deposits even after this tax is imposed, will remain one of the highest and most attractive among banks in Europe.
The government has committed to ensuring Cyprus remains the most attractive jurisdiction in Europe for international business and the efficiency drive that will be implemented by the new government is expected to further enhance this competitive edge.

Urban Redneck's picture

When is is the Eurotrash Media going to finally demonstrate that they aren't a bunch of quota-monkey collaborators and call out their dear leaders when the spout LIES such as: 

"Spain will defend that we agree in June on a system for a European recapitalization of banks and in December for a guarantee for deposits and a single resolution system."

Kaiser Sousa's picture

and the response from the people....


The concert, titled ‘CyprusAID – People for People’ will be held from 4pm until midnight in Nicosia. Around 50 Greek and Cypriot performers will sing without pay. In a statement, the organisers said:

During the last couple of days we have experienced a cold shower, lived through intense emotions and rapid reversals. The only thing we knew for sure was the uncertainty we were facing. This common thread of frustration brought together a group of actors and friends who decided to form an event, reacting against everything that is coming our way. This was drawn from a need. A need to be united, a need for solidarity, a need for a strong, common, and apolitical voice to be heard by the outside world. We want to share a positive message for the future that together we can do better."



pods's picture

Solidarity ends with bare shelves and rumbling stomachs.


Tango in the Blight's picture

Might as well give everyone who turns up cyanide-laced KoolAID.

If they're not going to burn banks and hang banksters they are better off dead.

little buddy buys the dips's picture

hang 'em high or die slowly, with chains.

Dr. Richard Head's picture

I pray my American cohorts awaken to the reality of our digital currency fractional reserve system and we have bank runs from sea to shining sea. Unfortunately, a girl from some reality show was photographed kissing some girl at a club while wearing lingerie.  Also, some nipples were slipping somewhere and spring training and all.......

TruthInSunshine's picture

A dedication to the first of what will be many All Hallowing Out Eves (Halloween is the fractional fiat banksters' favorite pagan holiday):

Radiohead - Codex [From the Basement HD]
e-recep's picture

he said nipple nipple something.

willwork4food's picture

Dr-I am insulted that you would suggest that Americans care more for sex, lingerie, boobies than....

what was the topic?

RSBriggs's picture

There was "nipple" and "kissing" in there.  What was the question again?

ZerOhead's picture

The Federal Reserve Bancorp of America will make sure a physical dollar is printed for every dollar in deposits.

Besides... Benny (and Krugman) has always said that a little inflation would be good for the economy...

de3de8's picture

RH -I'm doing my "running" early. I hate crowds.

TerminalDebt's picture

I'm too fat to run. Does McDonalds have cash on the menu yet?

pods's picture

The ember is starting to grow.  

And everything they do will fan the flames.  

I thought the dumbest thing they could do was steal deposits.

I was wrong.

Now they are going to implode the money supply to available cash on hand?

You cannot make this shit up.  


Shaten's picture

I wonder in a thought experiment, if you did collapse the curency to the actual printed amount.

If I read the chart correctly in America that would be

2472 Billion dollars

Would make a lot of people mad but would inject a massive amount of deflat into the system all at once.

and the total value of the US gold supply is:

10,920,429,098 dollars of gold

so 247 times too much paper to return to the gold standard.

Interesting thought experiment.
Tango in the Blight's picture

Unless the gold becomes 247 times as valuable. It's all numbers. Gold = Gold, fiat = vapor.

Timmay's picture

Lesson #1: FDIC "insurance" protects against nominal loss, but does nothing to protect against liquidity loss.

pods's picture

The FDIC will give you your money.

About an hour before a new currency is introduced.


Go Tribe's picture

Got it, thanks. I was wondering how they'll kill cash.

MagicHandPuppet's picture

Dear Spain,

You are next.  FORWARD!


Your owners 

OccupyTVstations's picture

Too bad intrade shut down... Luxembourg!

Luxembourg Bank Assets Liabilities 22x size of GDP, Cyprus only 8x. (If the graph doesn't show, it's at 15:26)

Banksters's picture

"This is an exceptional and unique case, which is being exceptionally applied to Cyprus," the Spanish prime minister said in the press conference.

I guess it was exceptional to seize Spanish pensions to buy their craptastic bonds.    Spain Taps Pension Fund in Borrowing Spree - Exceptionally exceptional.  Meanwhile France is going down the shitter. Negative French PMI triggers EU recession fears
McMolotov's picture

When do they start imposing curfews? First come the capital controls, then come the people controls...

TerminalDebt's picture

about an hour before the banks open, nobody allowed outside during bank hours

jus_lite_reading's picture

If people across the EU (and any location fiat-Zi0-p0nzi banks operate) did not learn this vary valuable lesson from the people of Cyprus, they deserve what they will get...

You ain't seen nuttin' yet! Remember my predictions in 2010... one by one they shall come to pass!

css1971's picture

"This is an exceptional and unique case, which is being exceptionally applied to Cyprus," the Spanish prime minister said in the press conference.

LOL. Exceptional!

Antifaschistische's picture

So, if you fly to Italy, and open a bank account with a 100,000 Euro Check from your bank in Cyprus, can you withdraw all the cash then?

hedgeless_horseman's picture



What is the status of Safety Deposit Boxes in Cyprus?

Societe Generale Bank - Cyprus Limited has available Safe Deposit Boxes, which are designed to give you a safe place to store your valuables along with piece of mind that comes from knowing that these items are secure.


Safe deposit Boxes are available in a variety of sizes. So no matter how large or small the items that you want to keep safe, there is probably a safe deposit box that will meet your needs.

Settlement of accounts between Originator Bank and Beneficiary Bank through the Use of Clearing and Settlement Mechanisms or Intermediaries as same are were defined in the SEPA Credit Transfer Scheme Rulebook, but now are determined by a small boy named Calvin and his stuffed tiger, Hobbes.

espirit's picture

Alright! CalvinBall rules apply.

My kind of game...

hedgeless_horseman's picture



"With SGBCy Saving Account experience the most convenient method for saving money. You can freely deposit and withdraw funds at any time and earn an attractive interest on your savings"...JKLOL. 



"With a Societe Generale Bank - Cyprus Limited Current Account you gain fast, easy and convenient access to your money anytime from our Branches, ATMs, over the phone and over the Internet. You can freely deposit and withdraw funds at any time and control your financials on a daily basis"...JKLOL.


LFMayor's picture

Fine, fine.  They're all fine here.  How about you?

defencev's picture

Another interesting question: If I am in Cyprus (I am not, god bless) and have ATM, say, linked to my US Charles Schwab account

did I have withdrawal limitations of 100 Euro during bank holidays? If all banks were closed during bank holidays, I presume that safe-deposit boxes of all banks were out of limits...

ATM's picture

You were limited to the max withdrawal as the ATMs are controlled by the local banking institutions. You could not get to 'your' box. The banks doors were locked.


defencev's picture

I am not sure about that. Typically, it works as follows. Bank establishes a limit on daily withdrawal. I cannot withdraw from that bank ATM more than their daily limit. However, I can go to ATM of another bank and can withdraw up to their limit etc.

I presume I can withdraw in this way much more than 100 euro ....