Bank depositors feared the government would seize their money, so many of them scurried to ATMs to make withdrawals.
The Cypriot economy is still having a rough time. Indeed, deflation has bedeviled the small Mediterranean island for more than three years.
This Oct. 7 article excerpt from the Famagusta Gazette provides details:
Cyprus recorded deflation for 39th straight month in September 2016, due to the reduction in electricity price, airfares and petrol, with deflationary pressures, however, remaining at the same low levels recorded in the previous two months.
The Statistical Service announced on Oct. 6 that the Consumer Price Index for September 2016, increased by 0.51 units to 99.14 units compared to 98.63 units in August 2016.
Compared to September 2015, CPI was reduced by 0.5% while for the period between January and September 2016, CPI is also decreased by 1.6% compared to the corresponding period of the previous year.
In the twelve-month period from October 2015 to September 2016, the annual average rate of change of the CPI was -1.6%, in comparison to the period from October 2014 to September 2015. The corresponding annual average rate of change of the CPI in the previous year was -1.8%.
As regards to the economic origin, the largest change when compared to the index of September 2015 was observed in electricity with a decrease of 15.0%. When compared to August 2016 the largest change was recorded in agricultural goods with a decrease of 3.3%.
You can read the entire article by following the link below: