Weeks go by without Constantinos Mentzis, a tavern owner here, stopping by his local bank branch. There is no point, he says, since banks in Cyprus have largely stopped functioning and small business like his are operating on a cash-only basis. “My butcher has to pay his supplier immediately, so he told me he has no choice but to ask for a payment on delivery for the meat I get from him. I try to work as much as I can with cash. In any case, there is no credit anymore,” he says. More than five months since Cyprus agreed to a €10 billion ($13 billion) international bailout to avert a financial meltdown, 90% of deposits in the country’s biggest lender, the Bank of Cyprus, remain effectively frozen while it goes through a messy restructuring. Capital controls ring-fence the country from the rest of the Eurozone.

Bloomberg

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