UPDATE 1-Cyprus to limit cash, credit-card use abroad - report

Wed Mar 27, 2013 11:10am EDT

NICOSIA, March 27 (Reuters) - Cyprus is to impose a ban on cashing cheques and limit the amount of cash that can be taken out of the country under a series of measures to avert a run on its s crippled banks, a Greek newspaper reported on Wednesday.

The Kathimerini newspaper, citing a government decree, said the measures would remain in force for seven days after the banks re-open on Thursday.

Cypriots who want to transfer money overseas will have to prove that the transactions meet strict rules laid out by the government.

To allow trade to continue, Cypriot businesses can pay for imports if they provide authorities with the necessary documentation.

The use of credit and debit cards overseas is restricted, and individuals travelling abroad can take a maximum of 3,000 euros on each trip.

Funds deposited with banks for a fixed period of time cannot be withdrawn early.

Officials at the Cypriot central bank and finance ministry told Reuters that the newspaper report was based on draft proposals and a final version had yet to be adopted.

Final proposals were expected to be published later on Wednesday, a day before the banks reopen for the first time in 12 days.

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