Cyprus Takes Steps to Avoid Bank Run

    NICOSIA, CYPRUS - MARCH 26:  Woman uses an ATM machine in Bank Of Cypruson on March 26, in Nicosia, Cyprus. After days of negotiation, Eurozone finance ministers have agreed terms for a 10 billion euro bailout deal, which aims to prevent the collapse of the Cypriot economy and ensure that Cyprus remain in the Eurozone.  The agreement, which has been described by Cypriot politicians as 'painful,' will see large bank account holders suffer big losses. (Photo by Milos Bicanski/Getty Images)

    Milos Bicanski/Getty,Milos Bicanski

    Not so fast, Russian oligarchs. Cyprus’s banks reopen tomorrow, but the the country is putting strict limits on how much cash can be withdrawn, fearing a run on the banks. The government is barring transfers of funds from Cyprus to other countries and capping the amount people can take on trips (€3,000) and spend on credit cards abroad (€5,000 a month). Even with those controls, however, Cyprus’s Finance minister said a flood of withdrawals are expected. To qualify for a European Union bailout, Cyprus agreed to freeze large bank accounts, many of which belong to wealthy Russians, and tax them heavily.

    Read it at The New York Times