Cyprus-Forum.com

[B25]

All we get on UK tv is politicians, economists and bankers spouting off - no news at all about how the lives of ordinary people are being affected.
Please keep us updated about what's happening in the petrol stations, shops etc. and the position with the cashpoints.
Amidst the rumours there will probably be some facts.

Good luck to everybody trying to go about their daily business in all this mess.

I have been out and about over the past three days and have done some shopping each day, and, quite frankly, I would say that life is continuing here much as before. I just notice more people at ATMs, but not huge queues, just one or two people waiting in places. Of course, the longer banks stay shut the more chaotic things will become, but I really think some of the reporting in the international media is a bit exaggerated. I have not seen a single placard in protest against the bank levy, let alone any 'street protests'.

Tim,

Is that because there's no money in the ATM's, or are these people just queuing to be first in line to get some money on the prospects of the banks opening next week, kind of queuing for days waiting to be the first to pick up a new Apple products?

There is money in the ATMs. I do not have a card for my Cyprus bank account, but fortunately I have a debit card for my UK bank account which also has some funds in it, and I withdrew money from local ATMs both on Tuesday and yesterday. On both occasions, somebody was already using the ATM and I saw them going through every card in their wallet withdrawing the maximum amount on each one, so some people are obviously trying to get the most out of their accounts while they can. Today, I noticed small queues in front of two ATMs on Makarios Avenue in Limassol and a third one nearby that was deserted, so perhaps the latter had run out of cash.
Frankly, given that they are letting people access their cash from ATMs, albeit with a daily limit per card, I do not see why they cannot open bank branches subject to the same daily limit on withdrawals. After all, some businesses want to deposit their takings, which can't be bad for the banks!

I think they would be wrong to be making any deposits right now. Even though may be safer from getting it nicked, but if the problem with the banks persist, then you stand to lose it anyway. Best take your chances and keep it on you.

[DT.]

I'm from Iceland and I speak from experience.

Your banks have absolutely no chance of surviving this. Once the pandora's box was opened it's all over.

The same happened in Iceland, and it took the banks a week to all go bust. But politicians kept saying they wouldn't. The state even lent the biggest and last bank to go bust a lot of money in that week to try to keep it a float, but it didn't do anything.

Once everybody consider the banks toast, they are. Even if you manage to raise enough money to solve current problem, it's not going to stop a run on the bank once they open, and they will eventually be run to the ground in a couple of days. All foreigners will instantly move their money out of Cyprus once the banks open, no matter what is said.



The only real solution to protect yourselves as a nation is to do two things:
1) move deposits to priority claims on the failed banks.
2) tax deposits beyond €100K before the banks go bust. Tax enough so that the state has enough money to pay out the €100K deposit guarantee.

This will ensure the state does not go bankrupt and ensure depositors get back maximum back in time.

I'm afraid you're spot on....

[Tim Drayton]

All we get on UK tv is politicians, economists and bankers spouting off - no news at all about how the lives of ordinary people are being affected.
Please keep us updated about what's happening in the petrol stations, shops etc. and the position with the cashpoints.
Amidst the rumours there will probably be some facts.

Good luck to everybody trying to go about their daily business in all this mess.

I have been out and about over the past three days and have done some shopping each day, and, quite frankly, I would say that life is continuing here much as before. I just notice more people at ATMs, but not huge queues, just one or two people waiting in places. Of course, the longer banks stay shut the more chaotic things will become, but I really think some of the reporting in the international media is a bit exaggerated. I have not seen a single placard in protest against the bank levy, let alone any 'street protests'.

Tim,

Is that because there's no money in the ATM's, or are these people just queuing to be first in line to get some money on the prospects of the banks opening next week, kind of queuing for days waiting to be the first to pick up a new Apple products?

There is money in the ATMs. I do not have a card for my Cyprus bank account, but fortunately I have a debit card for my UK bank account which also has some funds in it, and I withdrew money from local ATMs both on Tuesday and yesterday. On both occasions, somebody was already using the ATM and I saw them going through every card in their wallet withdrawing the maximum amount on each one, so some people are obviously trying to get the most out of their accounts while they can. Today, I noticed small queues in front of two ATMs on Makarios Avenue in Limassol and a third one nearby that was deserted, so perhaps the latter had run out of cash.
Frankly, given that they are letting people access their cash from ATMs, albeit with a daily limit per card, I do not see why they cannot open bank branches subject to the same daily limit on withdrawals. After all, some businesses want to deposit their takings, which can't be bad for the banks!

I think they would be wrong to be making any deposits right now. Even though may be safer from getting it nicked, but if the problem with the banks persist, then you stand to lose it anyway. Best take your chances and keep it on you.

Point taken. But what have the bank branches got to loose from being open to take deposits from anybody who wishes to make them? The bank staff must still be getting paid for doing nothing.

[CBBB]

Point taken. But what have the bank branches got to loose from being open to take deposits from anybody who wishes to make them? The bank staff must still be getting paid for doing nothing.

If they let customers in the banks I would expect some pretty nasty scenes.

[jonah]

Tim, would you make a deposit in a bank that may go bust,there is still a possibility that the banks might collapse here in Cyprus

[GreekIslandGirl]

Tim, would you make a deposit in a bank that may go bust,there is still a possibility that the banks might collapse here in Cyprus

No chance. Heard it all before. Went through the same hysteria over a "Grexit"! etc etc etc.

The most that will happen is some branches close to make the banks more efficient.

[appel]

You guys don't have a clue about the seriousness of this matter.

Who cares if you can still get small bills from ATM's? That's all smoke and mirrors. Your payment system is shut down currently. If your banks go bust, your entire payment system will crash and burn. Why does the payment system matter?

The payment system is used to pay for goods and services. Companies use it to pay salaries. People use it to pay their bills. Stores use it to purchase goods. If this cycle of payment stops, the entire economy shuts down. You won't get paid, stores won't be able to refill with groceries, you won't be able to use your creditcards, you won't be able to withdraw from ATM's. You will be literally thrown back to the stone age and forced to barter.

If your banking system crashes, so goes the payment system, and so goes your economy, your livelihood, your way to buy food, gas, medicine.

Worst case scenario, you will need to join the UN World Food Program, because you won't be able to import food from overseas because there is no payment system, no money.

You have no idea what kind of hardship awaits you if worst happens.

[Tim Drayton]

Tim, would you make a deposit in a bank that may go bust,there is still a possibility that the banks might collapse here in Cyprus

Probably not. I realise that the big two banks here are already technically bankrupt and will go to the wall without the bailout. I have already mentally written off the balance in my Bank of Cyprus account - although there is still hope that a rescue may be pulled off.

[jonah]

Your way over the top with your analysis,if our banks fail we go back to the CYP pound take the pain,re high inflation and a devaluation of our currency and start again with a new banking sector.

[danny1234]

Tim, would you make a deposit in a bank that may go bust,there is still a possibility that the banks might collapse here in Cyprus

No chance. Heard it all before. Went through the same hysteria over a "Grexit"! etc etc etc.

The most that will happen is some branches close to make the banks more efficient.

Still stuffing your face with chocolate and getting the sugar rush I see, you are a complete idiot with no idea what you are talking about. The Russians are coming