No chaos as Cypriot banks in Greece open
Published 5:00 am Thursday, March 28, 2013
ATHENS, Greece — It was not exactly a bank run.
Customers descended on the Cypriot banks in Greece on Wednesday, when branches opened their doors for the first time in 12 days, but it was nothing like the rush to liquidate that some experts had feared.
By 8 a.m., lines had formed at many of the more than 300 Greek branches that were owned by Cypriot banks until Tuesday. But they were not much longer than those usually seen after a long weekend.
While some jittery depositors said they had withdrawn the bulk of their savings, others appeared unruffled, saying they were just going about their usual banking business.
As well they might. Piraeus Bank, one of the largest Greek financial institutions, this week took over the local branches of the Cypriot lenders Bank of Cyprus, Hellenic Bank and Laiki Bank, also known as Cyprus Popular Bank. As a result, the deposits in those branches, which total about 15 billion euros, or $19 billion, roughly 10 percent of the total savings in Greece, will not be subject to any of the losses or capital controls that will hit some bank deposits in Cyprus.
Even so, the Cypriot debacle has rattled some savers enough for them to want their money back, regardless of who now owns their banks. Outside the main branch of Bank of Cyprus in central Athens, Panagiotis, a 40-year-old salesman who has been unemployed for three years, and who did not want to give his last name, said he had just withdrawn 1,000 euros, the bulk of his savings.
“I left 20 euros so they don’t close the account,” he said, adding that he planned to stash the money in a bookcase at his home. “I don’t trust banks anymore.”
Bank staff said there were no restrictions Wednesday on cash withdrawals — in contrast to Cyprus, where the authorities plan to put capital controls in place today when branches reopen there, an effort to avert a bank run.
A senior employee at the headquarters of Bank of Cyprus in Athens denied reports that some customers had been denied access to their safe deposit boxes.
“This is a normal business day — busy but normal,” he said. “People are cashing their pensions, paying their bills and, yes, making withdrawals.”