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Before the capital controls involving money transfers abroad are scrapped, enabling those who have sold their homes to repatriate the proceeds more easily, domestic controls will be fully eased first.

THE FINANCE ministry announced on Friday it was abolishing restrictions on fixed term bank deposits, introduced last year along with other capital controls to prevent a bank run.

The ministry also said it was increasing the current limit for monthly money transfers per person within the Republic, regardless of purpose, from €15,000 to €20,000. The same applies to companies, which can now transfer €100,000 per month instead of €75,000. Cyprus introduced capital controls last March to prevent a run on banks after a bailout shut down a major lender, and imposed losses on large deposits in a second. It was conditional for €10 billion in aid from the EU and the International Monetary Fund. Based on the plan for a gradual relaxation on transactions, domestic controls will be fully eased first, before transactions involving money transfers abroad are scrapped. There has been an incremental easing of restrictions, but cash withdrawals are still limited to €300 per day and cashing of cheques is not allowed. The ministry said on Friday that according to the roadmap, which was published in August 2013, all milestones of the second stage have been met – disbursement of funds under the macroeconomic adjustment program for the recapitalisation of co-ops, submission of the co-ops restructuring plan to the European Commission, recapitalisation of Hellenic Bank, approval of the Bank of Cyprus restructuring plan – therefore it is possible proceed with further easing of the restrictions.

Courtesy of Cyprus Property News