Abstract
This chapter presents a recollection of the events that occurred in Cyprus during and after the two-week period (15–28 March 2013) when the country was left with no banking system, subsisting solely on ATMs and payment cards. It examines the role of local bankers and key institutions, such as the International Monetary Fund (IMF), European Central Bank (ECB), and Eurogroup, in the light of corporate legitimacy; and appraises the transformation of the Cypriot society three years from the levy imposed on depositors. This work suggests that Automated Teller Machines (ATMs) and payment cards played a political role, securing peace through controlled circulation of money and transactions with restrictions. In addition, we argue that the new deal has sunk the real economy and pushed people towards practices and activities in the unrecorded sphere.
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Notes
- 1.
“Breaking News”, Radio Proto, Nicosia, CY, March 16, 2013.
- 2.
Suchman C. Mark, “Managing Legitimacy: Strategic and Institutional Approaches”, Academy of Management Journal, Vol. 20, No. 3, (1995) 571–610.
- 3.
Bátiz-Lazo Bernardo, Efthymiou Leonidas and Michael Sophia, “When Payments Infrastructure Turn Political: The 2015 Greek Financial Crisis Through Social Lenses”. October 7, 2015, http://www.charisma-network.net/finance/when-payments-infrastructure-turns-political-the-2015-greek-financial-crisis-through-social-lenses (accessed 12/10/2015).
- 4.
Melvin Aron Eisenberg, “Corporate Legitimacy, Conduct, and Governance - Two Models of the Corporation”, 17 Creighton L. Rev. 1 (1983), 2.
- 5.
Cyprus Police, “Statistics Data” last modified January 3, 2016, http://www.police.gov.cy/police/police.nsf/dmlstatistical_en/dmlstatistical_en?OpenDocument. (accessed November 20, 2015).
Further Reading
Clerides, S. (2014). The collapse of the Cypriot banking system: A bird’s eye view. Cyprus Economic Policy Review, 8(2), 3–35.
Michaelides, A. (2014). Cyprus: From boom to bail-in. Economic Policy, 29(80), 639–689.
Schneider, F. (2013). Size and development of the shadow economy of 31 European and 5 other OECD countries from 2003 to 2013: A further Decline. http://www.econ.jku.at/members/schneider/files/publications/2013/shadeceurope31_jan2013.pdf. Accessed 22 Dec 2015.
Bibliography
Breaking News. (2013). Radio Proto. CY: Nicosia.
Bátiz-Lazo, B., Efthymiou, L., & Michael, S. (2015). When payments infrastructure turn political: The 2015 Greek financial crisis through Social lenses. http://www.charisma-network.net/finance/when-payments-infrastructure-turns-political-the-2015-greek-financial-crisis-through-social-lenses. Accessed 12 Oct 2015.
Cyprus Police. (2016). Statistics data. Last modified January 3. http://www.police.gov.cy/police/police.nsf/dmlstatistical_en/dmlstatistical_en?OpenDocument. Accessed 20 Nov 2015.
Eisenberg, M. A. (1983). Corporate legitimacy, conduct, and governance – Two models of the corporation. Creighton Law Review, 17, 1.
Suchman, M. C. (1995). Managing legitimacy: strategic and institutional approaches. Academy of Management Journal, 20(3).
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Efthymiou, L., Michael, S. (2016). The Cyprus Cash Crash: A Case of Collective Punishment. In: Batiz-Lazo, B., Efthymiou, L. (eds) The Book of Payments. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-60231-2_13
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DOI: https://doi.org/10.1057/978-1-137-60231-2_13
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