Cyprus lifts capital controls on four foreign banks

The Ministry of Finance issued a second decree, exempting four foreign banks from the capital restrictions imposed on all banks ever since the Eurogroup enforced strict controls as part of a 10 bln euro bailout rpogramme. The four banks are BLOM Bank SAL, Lebanon and Gulf Bank SAL, Russian-owned OJSC Promsvyazbank and the Russian state-controlled VTB's subsidiary, Russian Commercial Bank (Cyprus) Ltd.

"All cashless payments or transfers of deposits/funds from a credit institution that is included in the above mentioned catalogue, for its own account or by the order of an international customer, are permitted and are not subject to any restrictive measure imposed under any other Decree issued under the Law", the Decree states.

The Decree permits "all transactions between a credit institution that is included in the catalogue and an international customer."

It notes however that "credit institutions that are included in the above mentioned catalogue are prohibited from servicing domestic customers that maintain accounts with their Head Office or soliciting and obtaining new business from domestic customers or opening new accounts for domestic customers," noting that "all domestic customers are also subject to the restrictive measures imposed by any other Decree issued under the Law."