Cyprus: What To Expect Tomorrow

The banks will reopen tomorrow and this is a moment that has been dreaded by the EU, as cameras will broadcast people making a run on the banks, long lines, protests, possible violence, etc., all which could lead to a cascade of similar events in other EU countries. 

The Crisis In Cyprus: Here's What You Need To Know Before The Banks Reopen Tomorrow

Cyprus’ banks will reopen Thursday for the first time in nearly two weeks, setting the stage for a potentially explosive showdown between depositors and state officials.

Here’s everything you need to know before the action starts at 1000 GMT tomorrow:

The Cypriot government announced Wednesday that it would impose certain “capital controls” meant to prevent a possible run on the banks. Under the new rules, depositors won’t be able to do any of the following [via Reuters]:

• Cash a check
• Withdraw more than €300 a day
• Take more than €3000 in cash per person in any currency out of the country
• Purchase more than €5000 in foreign goods and services with a credit card each month
• Make non-cash payments outside Cyprus without documentation showing they are paying for imports

The new rules will apply to all banks, not just the ones involved in the bailout deal. Also, according to the Cypriot government, the rules will only last seven days (if you believe that).

Still, even with the capital controls announced Wednesday, Cypriot authorities fear as much as 10 percent of the €64 billion on deposit in the country’s banks to be pulled out tomorrow.

This may be the most dangerous thing to watch for tomorrow [via ekathimerin]:

A British security firm that transports cash for Cypriot banks is working round the clock, sending teams out with police protection to stock bank machines and readying guards for when banks reopen on Thursday.

The world’s largest security firm, G4S, moves cash and will provide guards for Cypriot lenders including Bank of Cyprus and Cyprus Popular Bank, the two biggest, which are to be combined and see large depositors’ accounts frozen under a bailout agreed at the weekend.

[...]

… 180 G4S guards will be deployed at bank branches to help handle an anticipated surge of customers demanding cash and answers.

G4S Readies Guards As Cypriot Banks Prepare To Open

A British security firm that transports cash for Cypriot banks, meanwhile, is working round the clock, sending teams out with police protection to stock bank machines and readying guards for when banks reopen.

The world's largest security firm, G4S, moves cash and will provide guards for Cypriot lenders including Bank of Cyprus and Cyprus Popular Bank, the two biggest, which are to be combined and see large depositors' accounts frozen under a bailout agreed at the weekend.

The next big test will come on Thursday when 180 G4S guards will be deployed at bank branches to help handle an anticipated surge of customers demanding cash and answers.