LIMASSOL Cyprus Feb 14 Cyprus could lift all
capital controls by the end of this year if it makes sufficient
progress adopting an international bailout programme and
confidence is fully restored to the economy, its central bank
governor said on Friday.
Citing a roadmap for the gradual relaxation of capital
controls, Panicos Demetriades said the full easing would require
"substantive progress" in implementation of its economic
"That is expected to happen, if all goes well, by the end of
the year," he told journalists.
Cyprus introduced capital controls last March to prevent a
run on its banks after a bailout shut down a major lender, and
imposed losses on large deposits in a second. It was conditional
for 10 billion euros in aid from the EU and the International
Based on the plan for a gradual relaxation on transactions,
domestic controls will be fully eased first, before transactions
involving money transfers abroad are scrapped.
There has been an incremental easing of restrictions, but
cash withdrawals are still limited to 300 euros per day, cashing
of cheques is not allowed, savers cannot break time deposits and
large cash transfers have to be vetted.
Demetriades said he anticipated another round of easing on
domestic transactions in coming weeks.
"I believe we will be able in the next few weeks to engage
in the next set of relaxations which will essentially remove
nearly, if not all, domestic restrictions," he said.