Most Cyprus banks to reopen Tuesday, Central Bank source

        
Most Cyprus banks will reopen on Tuesday but the Bank of Cyprus and Popular Bank will reopen on Thursday, a Central Bank source said.          

"All banks with the exception of Popular and Bank of Cyprus will reopen on Tuesday," the Central Bank source said on Monday.        

Popular and Bank of Cyprus would re-open on March 28 and restrictions of a 100 euro ($130)-per-day withdrawal limit from cashpoints, introduced on Sunday, would remain in force until then, the source added.      

On another note, The U.S. Treasury Department welcomed Cyprus' last-ditch agreement with international lenders to avoid economic meltdown, saying it was important to protect insured depositors and shutter troubled banks.           

Cyprus will receive a 10 billion euro ($13 billion) rescue package to prop up its troubled banking system, in return for closing down its second-largest bank and inflicting heavy losses on big depositors.          

"It is critical to lay the foundation for a return to financial stability and growth in Cyprus," the Treasury said in a statement on Monday, adding that financial stability in the euro zone is important to the United States. The European Union is the United States' largest trading partner.          

"We will continue monitoring developments closely as details are finalized and the agreement is implemented," the Treasury added.                      

Earlier, European shares, the euro and oil rose, while safe-haven German government bonds and gold fell, after Cyprus agreed a bailout to save its banking system and keep it in the euro.                 

In the early hours of Monday morning Cypriot policy-makers reached a deal with the European Union, the European Central Bank and the International Monetary Fund to shut down its second largest bank and inflict heavy losses on uninsured depositors, including wealthy Russians, in return for a 10 billion euro ($13 billion).               

($1 = 0.7694 euros)         


REUTERS