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15.02.2014 - 11: 02

Central Bank of Cyprus: restrictions on the movement of capital will be withdrawn before the end of the year

Cypriot authorities will be able to completely remove all restrictions on the operation of Cypriot banks, including foreign ones, to the end of this year. This was announced at a press conference, the head of the Central Bank of Cyprus Panicos Demetriades.

According to him, in the near future will be lifted almost all restrictions on the movement of capital within the country. "I think we will be able to spend the next few weeks a number of mitigation measures that would lead to virtually complete removal of internal restrictions," - he said.

However Dimitriadis warned that the total abolition of capital controls will only be possible if the "significant progress will be made" in the implementation of the stabilization program agreed with the international lenders, and the country's banking system "fully back the trust of customers."

Tight control of capital movements was introduced in Cyprus in late March 2013 years after the decision of the Eurogroup "haircut" deposits with leading banks in the country in exchange for providing the anti-crisis government assistance amounting to € 10 billion Measures to limit banking operations were necessary to prevent withdrawal of the owners funds from their accounts abroad. Such measures, which have been applied for the first time in the history of the EU, caused a huge blow to business activity in the country and led to a sharp decline in the economy and higher unemployment.

Cypriot authorities gradually soften under control they adopted roadmap nonetheless continue to apply restrictive measures. So, still can not be removed from ATMs over € 300 a day, passengers can not be freely exported from a country of more than € 3 thousand prohibited cashing checks. There are also serious limitations on the volume of banking operations.

A source:

Tags: Cyprus Central Bank, Economy, Banks

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