Bank Crisis

Outrage in Cyprus Over Deposit Levy

Mass account withdrawals trigger bank freeze.

The people of Cyprus have spoken and they want the government's mitts off their money. An unprecedented, onetime levy on all bank accounts in Cyprus (6.75 percent of all deposits below €100,000 and €9.9 percent of those above that amount) in order to meet a bailout was met with widespread anger and rushes to local ATMs to withdraw money from bank accounts. As a result, the euro fell below $1.30, and the government has now frozen bank transfers to prevent mass withdrawals. Cyprus President Nicos Anastassiades went on television to calm people and promise revenues from natural gas reserves for those who keep their money in Cypriot banks for the next two years.