The Minister of Finance Imposes a Temporary Decree Concerning Restrictive Measures
On the 2nd of June 2014, two new restrictions were issued concerning the banks of Cyprus. The 30th Decree concerning the restrictions on Banks in Cyprus is valid for three months-91 days-starting from the 2nd of June. Generally speaking the 30th Decree eliminated the last domestic capital controls which were priory imposed, which concerned the prohibition of opening new bank accounts who were not prior customers of the bank.
The 21st Decree which refers to restrictions on transactions concerning banks outside the Republic of Cyprus valid for 28 days starting from the 2nd of June.
Further alleviations have been announced by the Ministry of Finance concerning the restrictive measures imposed on banking transactions in Cyprus, as stated in the 28th Decree.
Firstly, the 300 Euros daily cash withdrawal per individual has now been retracted. Also, the limit imposed on the transfer of domestic funds has been increased to 50,000 Euros and 200,000 Euros per month concerning natural and legal persons respectively. The previous limit was set at 20,000 Euros regarding natural persons and 100,000 Euros concerning legal persons. Moreover, termination of Fixed Term Deposits before maturity is now allowed and finally, individuals who are not customers of a credit organisation are now permitted to open a bank account under several conditions. That is, the account must be a new Fixed Term Deposit, the cash amount deposited must amount to at least 5,000 Euros and finally the Fixed Term Deposit should not be ended before its maturity.
For further information do not hesitate to contact MN and Associates.