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REPORTS: Banks In Cyprus Could Be Closed For Another Week, ECB Working On 'Insane' Plan

Matthew Boesler   

REPORTS: Banks In Cyprus Could Be Closed For Another Week, ECB Working On 'Insane' Plan
Stock Market1 min read

Banks in Cyprus have been closed since the country put together a deal with the EU over the weekend to bail out its troubled banking system.

The thing that makes this deal so controversial is that every person with a savings account at a bank in Cyprus will be subjected to an instant, 10 percent expropriation of his or her account balance before banks re-open.

They were originally supposed to re-open their doors today after a bank holiday Monday.

Then, it was reported that they would remain closed until Thursday.

A new report from Dow Jones suggests that Cypriot banks now won't be re-opened until next Tuesday.

That was followed by reports that the ECB is working on capital control plans for when the banks re-open.

Lorcan Roche Kelly, Chief Europe Strategist at Trend Macrolytics, tweeted that capital controls are a bad idea:

Meanwhile, depositors trying to access their cash in Cyprus remain in limbo.

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