Cyprus Banks Reopen, Bailout Negotiations Continue

March 28,2013

Banks across Cyprus reopened as scheduled Thursday, nearly two weeks after being shut down amid the country's brush with economic collapse. Meanwhile, the government continues to negotiate a bailout agreement with international creditors that will see large depositors lose a portion of their money.

Depositors formed long lines on the sidewalks and streets outside their banks long before the doors were unlocked at noon, local time - anxiously awaiting access to their accounts.

The banks were scheduled to stay open for just six hours, with customers only allowed to withdraw $383 a day.

Travelers leaving the Mediterranean island can take no more than $3,831 to other countries.

Cyprus Bailout

•Agreed to on March 25 •Worth $13 billion •Keeps Cyprus in the eurozone •Closes the island nation's second largest bank - Laiki Bank •Laiki accounts larger than $130,000 will be moved to a "bad bank" and used to raise bailout money •Laiki accounts with less than $130,000 euros will be moved to Bank of Cyprus •Bank of Cyprus will be restructured

The restrictions are part of the deal negotiated with the nation's creditors, including the European Union. European Commission Spokesman Sebastian Brabant says the restrictions are needed to maintain financial stability: