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Cyprus announces further easing of bank restrictions

21 February, 2014

Further easing of the restrictions on bank transactions were announced on Friday.
According to the decree, issued today by the Minister of Finance Harris Georgiades, the further easing of the restrictions includes:
( a) Abolition of the restrictive measures relating to fixed term deposits.

( b ) increase the current limit with respect to the transfer of money within the Republic , regardless of the purpose, per natural person, per month, from €15.000 to €20.000 and per legal person, regardless of the purpose, per month from €75.000 to €100.000.

The decree on International Banks remains unchanged. The period of validity of the two decrees is 35 days.

According to the Ministry of Finance, based on the Roadmap for the gradual relaxation of the restrictive measures which was published in August 2013, all milestones of the second stage have been met.

These include disbursement of funds under the macroeconomic adjustment program, for the recapitalisation of the COOPs, submission of the COOPs restructuring plan to the European Commission, recapitalisation of Hellenic Bank, approval of Bank of Cyprus’ restructuring plan by the Central Bank of Cyprus.

It is noted that as a result, the above easing of the restrictions could take place.

Capital controls on transactions in Cyprus were imposed following an agreement during the Euro Area Finance Ministers meeting on March 25, 2013 on a €10 billion bailout for Cyprus, featuring an unprecedented haircut on uninsured deposits in a bid to replenish the depleted capital of the island`s two largest banks which sought state support following massive losses due to the haircut of the Greek sovereign debt.