articles | 31 October 2013

Cyprus capital controls: €300,000 cap removed, exports up to €1 mln

The government has issued its 22nd decree, gradually lifting credit controls imposed to prevent a run on local banks and abolishing some measures that have hampered business transactions on the island.

The Finance Ministry said it had scrapped a requirement for supporting documentation on domestic business transactions exceeding €300,000 and raised the threshold for businesses making transactions abroad to €1 million for each deal from €500,000.

Finance Minister Haris Georgiades said he expects all currency controls related to domestic transactions to be lifted by spring 2014. Under the current controls, travellers abroad cannot take more than €3,000 out of the country, while the limit of money individuals can transfer from one bank account to another for payments now set at €15,000.

Other restrictions such as a €300 daily withdrawal limit for individuals, a ban on the cashing of cheques, a ban on breaking fixed-time deposits and the opening of an account at another bank remain in place.

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