As Cyprus struggles, Lebanon watches

ENAR

Endless queues at ATMs, protests in front of Parliament, banks closed for 12 consecutive days and businesses under increasing pressure to continue operating: the eastern Mediterranean island of Cyprus, just 200 kilometers from Lebanon, is in crisis management mode. The aptly named Cypriot central bank governor Panicos Demetriadres has tried to calm the situation, saying that “superhuman efforts” were being made to get the banks to open. And yesterday they did finally reopen — albeit with stringent capital controls such as a daily €300 ($384) cash withdrawal limit on depositors, a €5,000 ($6,400) monthly limit on card transactions and a €3,000 ($3840) cash limit per trip for people leaving the country.   The real cause of the mayhem is the size of the Cypriot banking sector’s investments. These investments accounted for 6.5 times the island’s tiny economy, compared to Lebanon’s 3.5 ratio. With money flowing into their coffers, the deposits