“There are a few reasons all banks will be shut for the next week in Cyprus. Firstly, there would be capital flight en masse, then there would be financial melt down because a lot of the money that depositors put into the Southern Greek banking system does not exist any more. It was lost to the Greek bond bailouts. So if you as a depositor put your life savings into one of these banks, the bank used your money already. Unfortunately, there is nothing you can do about it because the banks themselves are bankrupt unless they get more money from the ECB to pay depositors. This is the reason they cannot open the banks again because there is nothing to give to you,” a Laiki Bank official said from his luxury yacht moored in Paphos.
Because Greek Cypriot ministers rejected the proposed bank levy, the liquidity in the Cyprus banking system is now zero, or minus.
“We now stand to lose the whole deposit of our accounts because of the rejection of the 10% bank levy. I guess we will have to kiss Russian ass huh,” a depressed kebab shop owner told Cyprus Daily newspaper.
EU officials were said to be actually quite glad that the Cypriots rejected the deal and look forward to the next round of events.