[h=3]By JOE PARKINSON, MATINA STEVIS and NEKTARIA STAMOULI[/h]
ReutersA Laiki Bank manager tried to calm depositors waiting for the opening of the bank's branch in Nicosia March 28, 2013.
NICOSIA, Cyprus—Lines formed outside banks in Cyprus's capital early Thursday, but there was little sign of panic as the island's lenders reopened after a nearly two-week hiatus.
Small groups of depositors—mainly numbering a few dozen, mostly pensioners—pressed to enter the banks as they formally reopened at noon (1000 GMT) local time. Police officers and security guards at Bank of Cyprus in Nicosia's old town allowed eight depositors in at one time.
Gregos Hadjisophoklis, a retiree, had lined up outside the central branch of the Bank of Cyprus PCL, the island's largest lender, since 9 a.m., unaware that the bank would open later than its usual business hours. But he was prepared to wait: He badly needed cash to pay his rent and buy food.
European Pressphoto AgencyCustomers and media representatives waited outside a branch of the Bank of Cyprus, in Nicosia, Cyprus, on Thursday morning.
European Pressphoto AgencyAn elderly woman looked at a savings book as people waited in line.
"I have to get money because I have no [debit] card. It's been very difficult," Mr. Hadjisophoklis said as he stood in the pedestrian area in front of the bank astride the city's main Ledra Street shopping district. "There may be no one here at the moment but it's early; more will come."
For the moment though, the only crush at the branch was from the swarms of foreign journalists that have descended on the island over the past few days. At least a dozen camera crews were set up near the bank where Mr. Hadjisophoklis waited, disappointed that the bank lines many had expected to see this morning had yet to materialize.
Some Cypriots said they would wait until the weekend to go to the bank, fearing that a rush might topple the very banks that Cyprus's government is struggling to protect.
Nikos Panagiotou, 38, and George Nikolaou, 64, are both bus drivers. They stopped at a Bank of Cyprus branch before going to work. " We came here for the action. We just want to see what's going on, but we don't plan to go to the banks today or tomorrow. We will wait for things to calm down. Our wages may be delayed for two to three days but that's OK," said Mr. Panagiotou.
Pointing at his bald head, Mr. Panagiotou added: "I have already had my hair cut so I don't mind."
Amid fears that nervous savers could descend on the island's banks, late Wednesday the government rolled out aggressive capital controls—the first country in the euro zone to do so—that are expected to last at least a week, and possibly much longer, and are aimed at stemming cash flows out of the country. The island's central bank was also stockpiling billions of euros of bank notes late Wednesday to cope with demand the following day, officials said.
That cash was delivered to the banks by armored trucks on Thursday, and despite the delayed opening of the branches, bank staff arrived early to prepare for the day ahead. So did the security personnel. One private security guard standing outside a branch of Cyprus Popular Bank PCL, the country's second largest lender, said that there were two private security contractors and one policeman responsible for guarding each bank branch, with more available as backup.
"I think that people are going to be mad but we have to be patient," said the guard, who identified himself only as Andreas, and said his company didn't permit him to talk to journalists. "It's going to be a long day for us and very difficult."
Cyprus's banks have been closed since March 16, after the government initially struck a surprise deal—since rejected—to tax bank deposits in exchange for a €10 billion ($13 billion) bailout from euro-zone peers and the International Monetary Fund. Terms of a revised bailout, reached early this week, now foresees the closure of Cyprus Popular, also known as Laiki bank, and a massive restructuring of Bank of Cyprus.
Antonis Kalogeridis, a 47-year-old construction worker waiting outside a Cyprus Popular branch with two friends, said he's not so worried about his savings but he has been squeezed by the two-week-long bank holiday on the island.
"I stopped going to work two weeks ago because they stopped paying us," Mr. Kalogeridis said. "I only just have a few thousand euros in the bank so I don't really care what happens. It's just the insecurity you feel. I'm planning to come and get €300 every day."
Write to Joe Parkinson at [email protected], Matina Stevis at [email protected] and Nektaria Stamouli at [email protected]
ReutersA Laiki Bank manager tried to calm depositors waiting for the opening of the bank's branch in Nicosia March 28, 2013.
NICOSIA, Cyprus—Lines formed outside banks in Cyprus's capital early Thursday, but there was little sign of panic as the island's lenders reopened after a nearly two-week hiatus.
Small groups of depositors—mainly numbering a few dozen, mostly pensioners—pressed to enter the banks as they formally reopened at noon (1000 GMT) local time. Police officers and security guards at Bank of Cyprus in Nicosia's old town allowed eight depositors in at one time.
Gregos Hadjisophoklis, a retiree, had lined up outside the central branch of the Bank of Cyprus PCL, the island's largest lender, since 9 a.m., unaware that the bank would open later than its usual business hours. But he was prepared to wait: He badly needed cash to pay his rent and buy food.
European Pressphoto AgencyCustomers and media representatives waited outside a branch of the Bank of Cyprus, in Nicosia, Cyprus, on Thursday morning.
European Pressphoto AgencyAn elderly woman looked at a savings book as people waited in line.
"I have to get money because I have no [debit] card. It's been very difficult," Mr. Hadjisophoklis said as he stood in the pedestrian area in front of the bank astride the city's main Ledra Street shopping district. "There may be no one here at the moment but it's early; more will come."
For the moment though, the only crush at the branch was from the swarms of foreign journalists that have descended on the island over the past few days. At least a dozen camera crews were set up near the bank where Mr. Hadjisophoklis waited, disappointed that the bank lines many had expected to see this morning had yet to materialize.
Some Cypriots said they would wait until the weekend to go to the bank, fearing that a rush might topple the very banks that Cyprus's government is struggling to protect.
Nikos Panagiotou, 38, and George Nikolaou, 64, are both bus drivers. They stopped at a Bank of Cyprus branch before going to work. " We came here for the action. We just want to see what's going on, but we don't plan to go to the banks today or tomorrow. We will wait for things to calm down. Our wages may be delayed for two to three days but that's OK," said Mr. Panagiotou.
Pointing at his bald head, Mr. Panagiotou added: "I have already had my hair cut so I don't mind."
Amid fears that nervous savers could descend on the island's banks, late Wednesday the government rolled out aggressive capital controls—the first country in the euro zone to do so—that are expected to last at least a week, and possibly much longer, and are aimed at stemming cash flows out of the country. The island's central bank was also stockpiling billions of euros of bank notes late Wednesday to cope with demand the following day, officials said.
That cash was delivered to the banks by armored trucks on Thursday, and despite the delayed opening of the branches, bank staff arrived early to prepare for the day ahead. So did the security personnel. One private security guard standing outside a branch of Cyprus Popular Bank PCL, the country's second largest lender, said that there were two private security contractors and one policeman responsible for guarding each bank branch, with more available as backup.
"I think that people are going to be mad but we have to be patient," said the guard, who identified himself only as Andreas, and said his company didn't permit him to talk to journalists. "It's going to be a long day for us and very difficult."
Cyprus's banks have been closed since March 16, after the government initially struck a surprise deal—since rejected—to tax bank deposits in exchange for a €10 billion ($13 billion) bailout from euro-zone peers and the International Monetary Fund. Terms of a revised bailout, reached early this week, now foresees the closure of Cyprus Popular, also known as Laiki bank, and a massive restructuring of Bank of Cyprus.
Antonis Kalogeridis, a 47-year-old construction worker waiting outside a Cyprus Popular branch with two friends, said he's not so worried about his savings but he has been squeezed by the two-week-long bank holiday on the island.
"I stopped going to work two weeks ago because they stopped paying us," Mr. Kalogeridis said. "I only just have a few thousand euros in the bank so I don't really care what happens. It's just the insecurity you feel. I'm planning to come and get €300 every day."
Write to Joe Parkinson at [email protected], Matina Stevis at [email protected] and Nektaria Stamouli at [email protected]