Cyprus likely to extend bank holidays on Tuesday and Wednesday

FXstreet.com (Barcelona) - The Cypriot cabinet announced over the weekend that both Tuesday and probably Wednesday, a bank holiday will take effect. Fears are mounting over capital flights out of the banks after depositors were told the taboo decision of having to pay for the wrongdoings of the countries financial management.

According to Greek newspaper eKathimerini: "Nicosia postponed to Monday the tabling in Parliament of the bill including the measures for the Cypriot bailout – including a bank account haircut and tax hike on interest and corporate earnings – but the ECB insists on a rapid voting as there are already signs a domino effect will follow across European lenders and markets from Monday."

"Skai radio reported on Sunday that the Bank of Greece has sent between 4 and 5 billion euros to Cyprus in order to help Cypriot banks respond to cash requirements by their clients" eKathimerini adds.