Cyprus Takes Steps to Avoid Bank Run

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 Cyprus’s banks reopen tomorrow, but the the country is putting strict limits on how much cash can be withdrawn, fearing a run on the banks.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.