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Cyprus Banks Reopen, Bailout Negotiations1 Continue
Depositors formed long lines on the sidewalks and streets outside their banks long before the doors were unlocked at noon, local time - anxiously awaiting access to their accounts.
The banks were scheduled to stay open for just six hours, with customers only allowed to withdraw $383 a day.
Travelers leaving the Mediterranean2 island can take no more than $3,831 to other countries.
The restrictions3 are part of the deal negotiated with the nation's creditors4, including the European Union. European Commission Spokesman Sebastian Brabant says the restrictions are needed to maintain financial stability:
"Cyprus is facing exceptionally difficult circumstances including a very real risk of uncontrollable capital flight," said Brabant. "Therefore, the Commission considers, having made a preliminary assessment5 of the Cypriot laws, that the conditions for restricting free movement of capital are met in Cyprus at this stage."
The Cypriot cabinet met Thursday at the Presidential Palace to discuss terms of the bailout agreement.
European financial markets were steady Thursday as the banks reopened. Economist6 Pier7 Carlo Padoan said the markets were no longer concerned about the situation in Cyprus:
"If we have to judge from what has been happening in the last few days, we take the message that markets are not particularly worried about Cyprus and that the positive fact that I alluded8 to previously9, the fact that the overall systemic risk of the region had been going down, is not going to be changed by what is happening in Cyprus," said Padoan.
Security was tight Wednesday evening as armored trucks delivered thousands of euros to the Bank of Cyprus, while employees prepared to resume operations.
Cyprus banks have been closed since March 16 while the government negotiated a $13 billion bailout from European neighbors, the European Central Bank and International Monetary10 Fund. As part of the deal, Cyprus agreed to confiscate11 40 percent or more from the biggest, uninsured accounts above $130,000 to help pay for the rescue.
1 negotiations | |
协商( negotiation的名词复数 ); 谈判; 完成(难事); 通过 | |
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2 Mediterranean | |
adj.地中海的;地中海沿岸的 | |
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3 restrictions | |
约束( restriction的名词复数 ); 管制; 制约因素; 带限制性的条件(或规则) | |
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4 creditors | |
n.债权人,债主( creditor的名词复数 ) | |
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5 assessment | |
n.评价;评估;对财产的估价,被估定的金额 | |
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6 economist | |
n.经济学家,经济专家,节俭的人 | |
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7 pier | |
n.码头;桥墩,桥柱;[建]窗间壁,支柱 | |
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8 alluded | |
提及,暗指( allude的过去式和过去分词 ) | |
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9 previously | |
adv.以前,先前(地) | |
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10 monetary | |
adj.货币的,钱的;通货的;金融的;财政的 | |
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11 confiscate | |
v.没收(私人财产),把…充公 | |
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