As shop-keepers demand cash & buyers run out of it, banks refuse to open
23 March 2013 8:11 AM IST
Cyprus retailers are demanding hard cash for their goods, but worried residents say they will soon run short of money as banks stay firmly closed. Petrol stations, cafes, restaurants and neighbourhood kiosks are insisting on payment in cash, rejecting outright debit and credit cards, and cheque transactions.
Some larger stores were, however, still accepting plastic. 'We have pressure from our suppliers who want only cash. I have no option but to ask for cash from my customers,' said Demos Strouthos, manager of a restaurant in central Nicosia.
'In the past three days I have seen a 70 per cent fall in business. Usually on Fridays and weekends my restaurant is fully booked. But for the next three days I hardly have any bookings. I don't know whether I will open next week,' he added with an air of resignation.
EU sources have said the bloc is ready to eject Cyprus from the eurozone to prevent contagion of other debt-hit members such as Greece, Spain and Italy. Cypriot MPs were to meet in emergency session to debate a raft of bills aimed at raising the funds.
'I take only cash now. Every two days I have to pay my supplier in cash. I am not taking credit or debit cards, especially cards of Laiki Bank (Cyprus Popular Bank),' said the manager of one fuel station on Makarios Avenue. The Popular Bank is facing a run after reports that the island's second largest bank could be the first to collapse as the government battles to save the recession-hit economy.
Friday saw another day of anxious Cypriots queueing outside Popular Bank ATMs in Nicosia to withdraw whatever funds they could. Petrol Owners Association chairman Stephanos Stephanou said that fuel stations were in danger of closing if they did not have cash to refill their huge tanks. The island has enough fuel reserves but the petrol station owners are running out of money to pay for more supplies.
Some larger stores were, however, still accepting plastic. 'We have pressure from our suppliers who want only cash. I have no option but to ask for cash from my customers,' said Demos Strouthos, manager of a restaurant in central Nicosia.
'In the past three days I have seen a 70 per cent fall in business. Usually on Fridays and weekends my restaurant is fully booked. But for the next three days I hardly have any bookings. I don't know whether I will open next week,' he added with an air of resignation.
EU sources have said the bloc is ready to eject Cyprus from the eurozone to prevent contagion of other debt-hit members such as Greece, Spain and Italy. Cypriot MPs were to meet in emergency session to debate a raft of bills aimed at raising the funds.
'I take only cash now. Every two days I have to pay my supplier in cash. I am not taking credit or debit cards, especially cards of Laiki Bank (Cyprus Popular Bank),' said the manager of one fuel station on Makarios Avenue. The Popular Bank is facing a run after reports that the island's second largest bank could be the first to collapse as the government battles to save the recession-hit economy.
Friday saw another day of anxious Cypriots queueing outside Popular Bank ATMs in Nicosia to withdraw whatever funds they could. Petrol Owners Association chairman Stephanos Stephanou said that fuel stations were in danger of closing if they did not have cash to refill their huge tanks. The island has enough fuel reserves but the petrol station owners are running out of money to pay for more supplies.
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