ATMs are being drained in Cyprus after European Union chiefs decided late Friday night to raid private savings accounts to help pay for the country’s $13 billion bailout.
Of course it’s a holiday weekend and banks are closed on Monday, preventing a panicked bank run. It is now being reported that the Cypriot cabinet has extended the bank holiday into Tuesday and possibly Wednesday in an effort to calm the growing unrest. Electronic transfers have also been halted in order to prevent capital flight. EU banksters really know how to pull off a heist.
The euro zone agreed on Saturday to hand Cyprus a bailout worth 10 billion euros ($13 billion), but demanded depositors in its banks forfeit some money to stave off bankruptcy despite the risk of a wider run on savings.
In a radical departure from previous aid packages – and one that gave rise to incredulity and anger across the country – euro zone finance ministers forced Cyprus’ savers to pay up to 10 percent of their deposits to raise almost 6 billion euros.