22/03/13 14:11 CET
| updated xx mn ago
| updated at xx
Five days after Cyprus’ panicked leaders ordered banks to close their doors, the fate of the financial system hangs in the balance and credit cards are going out of fashion.
Reluctant to accept the promise of payment from customers, shop-owners say wholesalers are demanding cash on delivery. Some petrol stations, too, are refusing credit cards.
Retailers with only Cypriot bank accounts are struggling to ship supplies in from abroad. Gentlemen’s agreements are bridging the gap.
People are still waiting for hours in line at ATMs to get some cash so they can buy essentials, like food.
The streets are almost empty as Cypriots stay at home awaiting the final decision on the bailout. They are also trying not to do anything that requires them to spend money, conserving their cash until the banks re-open.
Many older people are having particular problems, as they don’t know how to use the ATM machines or they even don’t have a bank card to get money.
Chystalla Constantinou, is an 80-year-old woman living in a village near the capital Nicosia. She told euronews she has no more cash: “I never had a bank card and even if I had I couldn’t use it. I always went to a bank to get money. Now the banks are closed. How am I supposed to live without cash? I have some food at home and here in the village we’re exchanging food with each other so we can stay alive,” she said.
“The bakeries have special offers: 1.50 euros for bread and milk. Yesterday I waited three hours at an ATM to get 150 euros so I can buy milk, food for me and for my two children. People are staying at home as if we were at war. They want to take our savings. We worked for this money. We didn’t steal it. It’s ours, not theirs,” Elena Christodoulou, a 32-year-old mother from Nicosia told euronews.
Petros Petrides, a student from Limassol, says he has not been to university for a week in order to not spend money on petrol. “We are a family of six. My parents and four children. I stay at home so I wouldn’t have to borrow money from my parents. They don’t know if they going to get their salary at the end of this month. I really don’t know what to do”, he said.
Even the shops are closed. Many have already declared bankruptcy and the owners of those that are still open fear they will be bankrupt by summer.
“People don’t have money to get food. They are not going to spend money to buy anything else. Credit cards are not working. We can’t accept them. But even if we accept them our suppliers want only cash”, said Ioannis Ioannou, a shop owner in central Nicosia.
Saturday was the day news broke of a proposed levy on savings to raise the 5.8 billion euros Cyprus’ lenders at the EU and International Monetary Fund want in exchange for a 10 billion euro lifeline to keep the island financially afloat.
Adamos Hadjiadamou from the trade association that represents supermarkets in Cyprus said that since then, the majority of suppliers have suspended the customary practice of providing goods to stores in return for payments by credit or cheques.
- 1Lavrov hits Turkey with more penalties, doubts commitment to war on “secret allies” ISIL
- 2Belgian police release new details about on-the-run fifth Paris suspect
- 3Still no power in Crimea as protesters block repairs to pylons
- 4Russian marine Alexander Pozynich buried
- 5Turkey dismisses Russia’s economic threats over downing of fighter jet
- 1Warning or no warning – tension grows between Russia and Turkey over downed jet
- 2Russian co-pilot says his plane downed “without warning” by Turks
- 3Hollande adds Italy to his coalition before heading to Moscow
- 4Media war Turkish and Russian press react to downed fighter
- 5Germany will ‘do more’ to fight ISIL, says Merkel
- 1At least 22 people killed as Mali hotel siege ends
- 2Fate of pilots of downed Russian jet unclear
- 3Russia confirms Turks have shot down one of its planes on Syrian border
- 4Five questions on Russia’s air strikes in Syria
- 5Hasna Aitboulahcen did not detonate a suicide vest during the St. Denis shoot out
- 1Coordinated terror attacks leave dozens dead in Paris
- 2euronews live TV - News | euronews : the latest international news as video on demand
- 31000-year-old Bible found in Turkey
- 4Bomb and several shootings in central Paris – reports of fatalities and injuries
- 5International news | euronews, latest international news
- 6world Weather | euronews: world ten day weather forecast
- 7Police hunting Paris attacks mastermind battle with suspects in heart of Paris
- 8European Union News | euronews: latest breaking news and headlines about European Union
- 9latest sci-tech news : euronews : the latest international news as video on demand
- 10New temporary spiritual leader of Muslim Brotherhood appointed
- 11Humans consume more than planet can produce on ‘Earth Overshoot Day’
- 12Thousands in Bucharest blame corruption for Friday’s nightclub blaze
- 13‘Anonymous’ hackers’ group declares ‘war’ on ISIL
- 14‘Maxed-out:’ Jordan’s King Abdullah II’s frank warning over Syria crisis
- 15International breaking news | euronews online world breaking news in video
- 16Business news and finance news | euronews: international economic and finance news
- 17Special Reports : euronews : the latest international news as video on demand
- 18Iraq: deadly car bombs kill more than 60 in Baghdad
- 19Middle East - News | euronews : the latest international news as video on demand
- 20No Comment | euronews: international news images without commentary
Latest world news
Still no power in Crimea as protesters block repairs to pylons
Belgian police release new details about on-the-run fifth Paris suspect
Pope Francis arrives in Uganda
World Bank looks for backers for $16B plan for Africa to adapt to climate change
Tour operator threatens to jump from Colosseum in Rome
Wires > News
- 23:11 CET Sweden suspends flights to northern Iraq over security concerns
- 22:33 CET Insight – Voice of Paris attacks; Did he have bigger role?
- 21:53 CET Turkey’s Erdogan warns Russia not to ‘play with fire’
- 21:51 CET Pope holds private meeting with president of warring South Sudan
- 21:08 CET U.N. chief condemns deadly attack in disputed Abyei region
- 21:06 CET Saudis failed to investigate air strikes on Yemen civilians -…
- 19:58 CET Lebanon PM urges presidential vote after new push to find candidate
- 19:47 CET U.S.‘s Biden, Italy’s Renzi discuss fight against Islamic State -…