7 Apr 2013

Currency controls partially relaxed by Cyprus

5:57 am on 7 April 2013

Cyprus has partially relaxed currency controls, imposed to prevent a run on its banks, issuing a decree permitting companies to make small cash transfers between banks.

However, the transfer limit for individuals is restricted to two thousand euros per month.

In a statement, the finance ministry said companies could transfer up to 10,000 euros ($US13,000) per month from one bank account to another. The limit for individuals was 2000 euros.

Other restrictions, including a daily cash withdrawal limit of 300 euros from banks and a vetting process for payments of more than 25,000 euros per day remain in place.

Cyprus introduced currency controls in late March in return for a 10 billion euro bank bailout by the International Monetary Fund and the European Union, after heavy losses by the two largest banks in the country.