(MENAFN- Qatar News Agency) The Central Bank of Cyprus has eased some of the restrictions imposed as the nation's banks reopened, following an international bailout deal. Debit and credit cards can be used normally for domestic payments. The central bank said it would review the curbs on a daily basis and try to "refine or relax" them when possible.
A 5,000-euro monthly limit per person remains in place for card purchases abroad, to stop the flight of capital from the country. "Each day, we will measure and look to refine or relax these controls with the overriding goal of safeguarding and stabilizing the Cypriot financial system," the central bank said in a statement.
Cyprus needs to raise 5.8 billion euros to qualify for the bailout, and has become the first Eurozone member country to bring in capital controls to prevent a torrent of money leaving the island and credit institutions collapsing.
As well as a daily withdrawal limit of 300 euros, Cypriots may not cash cheques and those leaving the country will only be allowed to take 1,000 euros with them. Depositors with more than 100,000 euros will see some of their savings exchanged for bank shares.
Foreign Minister Ioannis Kasoulides said on Thursday that such controls could gradually be lifted over the course of the month. But many economists predict the controls could be in place for much longer. Earlier on Friday, President Nicos Anastasiade said Cyprus had "averted the risk of bankruptcy" following the 10 billion-euro bailout deal with the EU and IMF.
Banks opened on Thursday for the first time in nearly two weeks amid severe new rules imposed as part of the bailout deal. Queues formed of people trying to access their money, but the mood was generally calm. By Friday, banks had returned to their normal working hours and there were no longer reports of big queues.
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