UPDATE 1-Cyprus to cap cash withdrawals, scrutinise transactions

Wed Mar 27, 2013 3:08pm EDT

NICOSIA, March 27 (Reuters) - Cyprus will limit the use of cheques to businesses, cap cash withdrawals to 300 euros per day and scrutinise all commercial transactions over 5,000 euros when banks reopen on Thursday, a Central Bank official said.

Yiangos Demetriou, head of internal audit at the Central Bank, said the controls would allow unlimited use of credit cards within Cyprus, but set a limit of 5,000 euros ($6,400) per month abroad.

He said the measures would remain in place for four days, contradicting an earlier report by the Athens newspaper Kathimerini that the controls would last seven days.

"That doesn't mean it cannot be reviewed in the meantime depending on developments," Demetriou told the Cypriot state broadcaster.

"The rationale is that these measures will be reviewed on a daily basis, so if there is the possibility of relaxing them we will," he said.

The central bank says banks will reopen at midday (1000 GMT) on Thursday, ten days after they closed their doors on the orders of the government to avert a run on deposits as the island negotiated a bailout deal with the European Union and International Monetary Fund.

Demetriou said the central bank would review all commercial transactions between 5,000 and 200,000 euros, and scrutinise any larger transactions on a case-by-case basis.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.