Cyprus Takes Steps to Avoid Bank Run

Not so fast, Russian oligarchs. Cyprus’s banks reopen tomorrow, but the the country is putting strict limits on how much cash can be withdrawn, fearing a run on the banks. The government is barring transfers of funds from Cyprus to other countries and capping the amount people can take on trips (€3,000) and spend on credit cards abroad (€5,000 a month). Even with those controls, however, Cyprus’s Finance minister said a flood of withdrawals are expected. To qualify for a European Union bailout, Cyprus agreed to freeze large bank accounts, many of which belong to wealthy Russians, and tax them heavily.