Banks in Cyprus to Close until Thursday

Banks in Cyprus will remain closed until at least Thursday while talks continue over controversial plans to put a levy on savers’ deposits.

The news that bank accounts face a one-off tax to help fund the country’s bailout saw depositors rush to cash machines, which soon ran out of funds.

Politicians want to finalise the bailout terms before banks re-open, as fears mount of a bank run.

Plans for a levy unnerved investors, sending shares and the euro lower.

Cyprus’s banks were closed on Monday for a Bank Holiday, and the country’s central bank said they would now remain shut until Thursday at least.

On Saturday, the government, the European Union and International Monetary Fund agreed an outline deal for a levy on bank deposits in return for a bailout worth 10bn euros ($13bn; £8.6bn).

The move sparked protests in Cyprus, and criticism from Russia, many of whose nationals hold large bank deposits on the island.

via BBC

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