Cyprus Minister of Finance issued on Friday new decrees on capital restrictions both on domestic and foreign banks, facilitating domestic financial activity.
The decrees (23rd on domestic banks and 14th on foreign banks) will come into force on Monday, November 25 and will apply for 28 days.
The decrees permit the opening of current accounts for servicing loans to be used also for the client`s regular activities but not for depositing purposes.
The funds can be deposited in cash or be transferred from an account abroad or from other accounts within the Republic subject to the prevailing restrictive measures.
The account’s credit balance cannot at anytime exceed the amount of the loan balance.
Capital controls on transactions in Cyprus have been imposed following an agreement during the Euro Area Finance Ministers meeting on March 25 2013 on a €10 billion bailout for Cyprus, featuring an unprecedented haircut on uninsured deposits in a bid to replenish the depleted capital of the island`s two largest banks which sought state support following massive losses due to the haircut of the Greek sovereign debt
