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Cyprus further relaxes capital controls

28 March, 2014

Cyprus Finance Ministry has eased further restrictive measures imposed since the €10 bailout agreed with the EU/IMF one year ago.

A press release issued by the Finance Ministry notes the relaxations of the restrictive measure were deemed feasible following "the achievement of the milestones set out in the roadmap and the overall stabilization and restoration of confidence in the banking system."

The 28th decree, which will be valid for 35 days, abolishes the daily maximum amount of cash withdrawal of €300 per natural person and €500 per legal person and increases the current limit with respect to the transfer of money within the Republic regardless of purpose from €20,000 monthly to €50,000 per person while the same monthly limit for companies is raised from €100,000 to €200,000.

The decree also abolishes the prohibition to terminate a fixed term deposit prior to its maturity date, and therefore all related exemptions and the opening of a new account for any person who is not an existing customer of a credit institution it is allowed provided that the account is a new fixed term deposit created with funds from cash provided that the amount to be deposited exceeds €5.000 and the new fixed term deposit cannot be terminated prior to its maturity.
The Decree on International banks remains unchanged.