Bundesbank supplied Cyprus with banknotes

28th March 2013, Comments 0 comments

The German central bank or Bundesbank confirmed it supplied its counterpart in Cyprus with banknotes as the island's banks reopened Thursday after an unprecedented 12-day lockdown.

"The banknotes come from the logistical reserves of the European Central Bank, which are stored by the Bundesbank," a German central bank spokeswoman told AFP.

A spokesman for the ECB also confirmed the information.

According to the business daily Handelsblatt, five billion euros ($6.4 billion) worth of banknotes were flown to Cyprus in a Lufthansa jet.

Other media reports put the amount at between 1.5-5.0 billion euros.

Neither the Bundesbank nor the ECB were willing to confirm the numbers, but did not deny them either.

Financial sources told AFP that the amount was less than 5.0 billion euros.

Euro banknotes are not printed and stocked by the ECB in Frankfurt, but by the different national central banks which make up the eurosystem. But a number of central banks are supplied by others, as is the case for Cyprus.

Cypriots stayed calm as banks reopened on Thursday after a nearly two week lockdown, with tight capital controls stopping customers from draining the island's coffers after its eurozone bailout.

© 2013 AFP

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