Reports that the EU's latest bailout deal with Cyprus would include a levy of up to 10 per cent on citizens' savings have caused consternation in the Greek island and led to a rush on ATMs.
A vote in parliament was due today, with many hopeful that the levy proposal would still be thrown out.
Andreas Agrotis, of Cypriot importer-exporter Amalthia Trading, is one. He said that most people in the country were 'angry and upset' by the move, with the credibility of the government hitting a new low as a result.
He also feared that, regardless of the result of the parliamentary vote, the damage would already be done.
'This will be very bad for Cyprus,' he told Eurofruit. 'Anyone thinking of investing in the country will now reconsider. Imports will be affected due to difficulties in gaining insurance. A lot of shipments will have to be cash in advance, which will be very tricky.
'The market may not be paralysed, but there will be big problems. Everyone will be more conservative, in all sectors. Services will be affected, tourism will be down – there is already news of Russians cancelling their summer holidays here.'
The knock-on effect is perhaps even more worrying, with some commentators suggesting that Cyprus could be the first of many in Europe.
'If this happens in Cyprus, it could have an immediate impact in countries like Spain and Italy,' said Agrotis. 'People will be concerned about the security of their savings and it could cause a rush on the banks over there as well.'
