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A woman tells the BBC's Tim Willcox she faces losing 40% of her savings after she came to Cyprus hoping to retire
Security is tight in Cyprus as banks prepare to reopen nearly two weeks after closing while a controversial international bailout was negotiated.
Banks were replenished with cash overnight and police and private security guards have been deployed.
Customers face strict controls to stop a bank run and will be able to withdraw only 300 euros ($383;£253) a day.
The restrictions on the free movement of capital represent a profound breach of an EU principle, correspondents say.
However, the European Commission on Thursday justified the move, saying the "stability of financial markets and the banking system in Cyprus constitutes a matter of overriding public interest".
Cyprus is the first eurozone member country to bring in capital controls.
Cyprus capital controls
- Daily withdrawals limited to 300 euros
- Cashing of cheques banned
- Those travelling abroad can take no more than 1,000 euros out of the country
- Payments and/or transfers outside Cyprus via debit and or credit cards permitted up to 5,000 euros per month
- Businesses able to carry out transactions up to 5,000 euros per day
- Special committee to review commercial transactions between 5,000 and 200,000 euros and approve all those over 200,000 euros on a case-by-case basis
- No termination of fixed-term deposit accounts before maturity
Cyprus needs to raise 5.8bn euros to qualify for a 10bn-euro bailout from the European Union, European Central Bank and the International Monetary Fund, the so-called troika.
As part of the bailout plan, depositors with more than 100,000 euros will see their savings taxed in exchange for bank shares.
An earlier plan to tax small depositors was vetoed by the Cypriot parliament last week.
Run fearsIn a statement issued on Wednesday, the ministry of finance insisted the capital control measures were temporary and were needed to "safeguard the stability of the system".
It read: "The Central Bank of Cyprus and the government of Cyprus will review them each day, with a view to progressive lifting of the measures as soon as circumstances allow. "
The stock exchange, shut since 16 March, will remain closed on Thursday and will not reopen until after Easter.
Correspondents say some fear a run on the banks when they reopen between noon and 18:00 local time (10:00-16:00 GMT), nearly two weeks after they closed and progressively stricter limits were placed on withdrawals at cash machines.
Armed police are on guard and hundreds of staff from the private security firm G4S will be guarding bank branches and helping to transport money.
However, there was no sign of long early queues.
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John Arghyrou, head of G4S Cyprus: "We advise our guards to be understanding"
Severe new rules have been imposed on money movements to prevent a torrent of money leaving the island and credit institutions collapsing.
As well as the 300-euro daily withdrawal limit, Cypriots may not cash cheques.
Payments and/or transfers outside Cyprus via debit and or credit cards are allowed up to 5,000 euros per person per month.
Transactions of 5,000-200,000 euros will be reviewed by a specially established committee, with applications for those over 200,000 euros needing individual approval.
Travellers leaving the country will only be allowed to take 1,000 euros with them.
On Wednesday night, hundreds of protesters rallied outside the presidential palace, chanting: "I'll pay nothing; I owe nothing," the Reuters news agency reported.
"Start Quote
End Quote Bank of Cyprus employeeWhen there is no banking system, there is no economy. I mean, we'll go back to the stone age, what can I tell you?"
Many economists predict the controls could be in place for months.
The unprecedented restrictions represent a profound breach of an important principle of the European Union that capital, as well as people and trade, should able be to move freely across internal borders, says the BBC's economics correspondent Andrew Walker.
However, the European Commission said member states could introduce capital controls "in certain circumstances and under strict conditions on grounds of public policy or public security".
But it added that "the free movement of capital should be reinstated as soon as possible".
The vice-president of the Cypriot Employers Federation, Demetria Karatoki, told the BBC he believed the country could pull through.
"Although there is going to be hardship, at the end of the day we can start rebuilding our economy on a sound basis," he said.
But British Cypriot businessman, Costa Thomas, said he had lost faith in the system.
"No-one really trusts politicians. So why should we believe them that these controls are going to last only a few weeks and we're going to get shares and get the money back?" he asked.
One employee of the Bank of Cyprus told the BBC that everybody's jobs were at risk.
"If the Bank of Cyprus collapses, all the small business, the large businesses, everything collapses. They cannot buy anything, import anything, export anything. There is nothing," she said.
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