Finance Ministry to stop rival bank ATM charges 

Cyprus’ Finance Ministry will intervene to stop banks charging for cash withdrawals made from their ATM by customers from a rival bank.

Finance Minister Constantinos Petrides told MPs a decree is to be issued next week which will also impose a ceiling on other charges for services offered by local banks.

The Finance Minister along with Central Bank governor Constantinos Herodotou appeared before the House’s Ethics’ Committee on Wednesday following a public outcry over a series of increases in bank charges for services offered.

Petrides confirmed that the government had to step in with what he sees as an “extreme measure which consists of state intervention”.

Former Finance Minister Harris Georgiades was not in favour of such a measure, he had told MPs in previous meetings.

The decree to be issued on Wednesday 11 March will see the Ministry introducing a ban on charges for withdrawals made by people from an ATM of a bank other than their own within Cyprus.

It will also introduce a ceiling on annual fees charged by banks for maintaining current accounts, standing orders and issuing a credit card.

The Ministry may force banks to introduce lower charges for customers from vulnerable groups.

The Central Bank governor said the measures would have an impact on the banks costing several million, but it will not have an effect on their financial stability.