Dec 08, 2014

Finance Ministry Further Eases Capital Controls

The Ministry of Finance has further eased capital controls imposed on client transactions through the island’s lenders in March 2013.

The 32th decree of restrictions on transactions of domestic banks, which enters into force as of today, December 7, includes three amendments:

  • The transactional value which falls within the category of normal business activity is raised from €1 million to €2 million;
  • The monthly limit on the transfer of funds outside of Cyprus is increased from €5,000 to €10,000;
  • The export of euro and/or foreign currency notes is doubled from €3,000 to €6,000 per natural person per journey abroad.

According to the Ministry, the new decree will be applicable for a thirty five-day period.

Restrictive measures were imposed on local lenders when Cyprus agreed a €10 billion bailout with its Troika of international lenders last year so as to reduce the risk of a lack of substantial liquidity and deposit outflow the could have endangered the banking system’s viability.

Article Source: