Cyprus banks braced for reopening

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Cyprus banks braced for reopening

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The Cypriot government has imposed tight restrictions on access to funds as the banks prepare to open for the first time in nearly two weeks.

Among the moves to prevent a run on the banks is a 300 euro cap on withdrawals and a 3,000 euro limit on money allowed out of the country.

The European Central Bank sent a plane containing 1.5 billion euros to Larnaca.

Authorities expect banks to be hit hard for cash when they reopen, but the capital controls are designed to help block the mass exodus of money.

Since accounts were frozen on March 16 businesses have been unable to pay their employees and importers banned from settling accounts.

The restrictions are due to remain in force for seven days, but they are expected stretch way beyond that.