Cyprus drops only remaining domestic capital control| MENAFN.COM

Wednesday, 29 June 2022 12:38 GMT

Cyprus drops only remaining domestic capital control

(MENAFN- AFP) Cyprus abolished Friday the last remaining control on domestic capital movements, a year after imposing draconian measures to avoid a run on banks, and will now allow Cypriots to open new bank accounts.

The authorities closed the banks for two weeks in spring 2013 as they put the final touches on a 10-billion-euro ($13.6 billion) bailout by the European Union and International Monetary Fund.

They imposed a raft of measures on domestic and international capital movements when the banks reopened.

Among the domestic restrictions were a 300 euro daily limit on cash withdrawals, the inability to cash checks and controls on transferring funds from one bank to another.

All those restrictions have since been lifted, and the prohibition on opening bank accounts was the last.

The finance ministry said that, after the bank mergers and recapitalisations carried out under the bailout deal, a recent upgrading of the country's credit ratings and restoration of confidence in the banking system, it is possible to abolish all domestic restrictions on transactions.

However, there are still certain international restrictions, among them a 3,000-euro limit on cash a traveller can take out of the country on each trip abroad.

Cyprus said it could abolish all remaining controls by the end of 2014 if there is sufficient progress on its bailout programme and investor confidence is fully restored.

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