ATHENS: Greek subsidiaries of three Cypriot banks reopened on Wednesday after they were taken over by a Greek peer, but banks in Cyprus itself remained closed as authorities worked out a plan to get them back up and running amid the country's financial crisis.
Branches of the Bank of Cyprus (BoC), Cyprus Popular Bank (Laiki) and Hellenic Bank opened, some to long lines of depositors who were worried about the safety of their savings, AFP journalists noted.
Around 40 people waited in Athens to enter the local headquarters of the BoC, where taxi owner Alexandros Dibas told AFP: "The European decision has hurt confidence in the markets and among account holders."
A bank employee confirmed that "people are worried but we are trying to reassure them."
On Tuesday, the third biggest Greek lender, Piraeus Bank, said it had signed an agreement to acquire all of the Greek deposits, loans and 312 branches owned by the three Cypriot banks.
Cyprus secured a 10-billion-euro ($13-billion) bailout from the European Union and International Monetary Fund early Monday that saved the eurozone member from bankruptcy, while agreeing to restructure the BoC and Laiki at an undetermined cost to clients with more than 100,000 euros in deposits.
Cypriot banks were to remain closed for the 12th day running on Wednesday, and central bank governor Panicos Demetriades has warned that "superhuman" efforts would be needed to reopen them by Thursday with capital controls set to prevent depositors from draining their accounts.
Because they were placed under Greek control, the local subsidiaries of the Cypriot banks were expected to be spared those restrictions.
The Athens stock market nonetheless plunged by 4.9 percent on Tuesday owing to fears about fall-out from the Cypriot crisis given that the two countries' economies have close links. (AFP)
