Cyprus crisis: MPs approve bank restructuring and solidarity fund – as it happened | Business | guardian.co.uk

 

via Cyprus crisis: MPs approve bank restructuring and solidarity fund – as it happened | Business | guardian.co.uk.

We now have details of the ‘capital controls’ which Cyprus intends to vote into law (sometime) today, thanks to star blogger @YiannisMouzakis:

It’s a remarkable set of restrictions on the usual nuts and bolts of the financial system – particularly given the final point:

  • Restrictions in daily withdrawals
  • Ban on premature termination of time savings deposits
  • Compulsory renewal of all time savings deposits upon maturity
  • Conversion of current accounts to time deposits
  • Ban or restrictions on non cash transactions
  • Restrictions on use of debit, credit or prepaid debit cards
  • Ban or restriction on cashing in checks
  • Restrictions on domestic interbank transfers or transfers within the same bank
  • Restrictions on the interactions/transactions of the public with credit institutions
  • Restrictions on movements of capital, payments, transfers
  • Any other measure which the Finance Minister or the Governor of Cyprus Central Bank see necessary for reasons of public order and safety

You are watching a series of restrictions of the functions that money can perform being carried out in a limited defined territory.

 

THIS IS AN ATTACK ON A STATE ISSUED CURRENCY.

IF IT SUCCEEDS THESE RESRICTIONS WILL BECOME SEMI PERMANENT.

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