'60% levy' possible in Cyprus

Savers with the Bank of Cyprus could be given shares in the bank, a source close to the negotiations has told the news agency Reuters as some initial details of the euro bail out are released.

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  1. Richard Edgar

No riots and no queues: The run on Cypriot banks happened with keyboards

The precious eurozone deposit guarantee on the first €100,000 in an account, that has survived in tact - but only just. The very fact that politicians considered imposing a levy has sown the seed of doubt in depositors minds right across the eurozone, but especially in the weaker countries.

Why is that so significant? Well, if there is even a hint of trouble at your own bank the only rational thing to do is to go and get your cash out as quickly as possible - that is how a run on banks starts.

The government deposit guarantee that your money is safe that is the only thing that can really stop that. What we now know is that other governments could potentially break their word on those.

Open doors and no queues, but despite the restrictions money still left Cyprus Credit: Reuters

The insecurity all this has created in Cyprus has led to the control on the free movement of finance for the first time in the eurozone so that sets a precedent. Although there has been no visible sign of panic today but we did learn that there has been a run on the banks - by stealth.

Depositors from other eurozone countries have withdrawn a fifth of their deposits in the last month alone. So while no riots in the streets, no queues - it happened with keyboards.

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