Cyprus

If failed, Cyprus Facing Possible Exit from the EU

Two major banks in the financial crisis slashed Cyprus daily cash withdrawal limit from an ATM machine.

With long queues outside cash machines across the island, Laiki (Popular) Bank cut its maximum withdrawal at ATMs to 100 euros (about R1, 26 million) per day and the Bank of Cyprus reducing the limit to 120 euros (about R1, 51 million) per day.

Laiki Bank, Cyprus's second-biggest lender, prohibiting cash withdrawals up to 260 euros (about Rp 3, 28 million) per day on Thursday, after the ATM was surrounded by interesting consumers before the daily limit of 700 euros (about Rp 8, 83 million).

Cypriot President Nicos Anastasiades was in talks in Brussels bailout, the banking restructuring associated islands and handle surges decreased cash through œpemangkasan â €, â € or retribution, from several bank deposits.

Mediterranean islands are facing the possibility of exit from the euro, the European Central Bank to stop funding on Monday. Bank of Cyprus will not reopen until Tuesday after the close of 10 days.

Parliament has passed legislation to place all deposits Laiki above 100,000 euros (about R1, 26 billion) to â € œbank the burukâ € where they will be bound and never fully recovered.

But negotiations have problems, related to EU-IMF demands to apply levies on deposits at the same threshold in the Bank of Cyprus to avoid facing a similar restructuring. The island's largest lender, holds more than a third of all deposits. So Antranews reported.