Cyprus to partially ease controls on financial transactions- cbank source

NICOSIA, April 2 Tue Apr 2, 2013 3:54am EDT

NICOSIA, April 2 (Reuters) - Cyprus is expected to announce a partial relaxation of currency controls on Tuesday, raising the ceiling for financial transactions that do not require central bank approval to 25,000 euros from 5,000, a central bank source said.

Cypriot authorities have also decided, in consultation with international lenders, to unblock 10 percent of a 40 percent effective freeze on large deposits in Bank of Cyprus under a bail-in arrangement.

The bail-in sees another 37.5 percent of deposits exceeding 100,000 euros converted to equity in the bank and an additional 22.5 percent used as a buffer which could, if circumstances warrant it, also be converted to equity.

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