Cyprus limits ATM withdrawals to 100 euros per day at two biggest banks

Cyprus Central Bank Governor Panicos Demetriades leaves the presidential palace in Nicosia March 21, 2013. REUTERS/Yorgos Karahalis

NICOSIA (Reuters) - The central bank in Cyprus imposed a 100-euros per day withdrawal limit at cash machines for the island’s two biggest banks on Sunday to avert a run on the lenders.

A spokesman for second largest lender Cyprus Popular Bank, which had previously limited withdrawals to 260 euros, said the new measure began at 1 p.m. (7.00 a.m. ET) and would remain in place until the bank reopens, scheduled for Tuesday, or until confirmation of continued emergency funding from the European Central Bank.

A government official, who declined to be named, said the restriction also applied to Bank of Cyprus. The official had earlier said the measure applied to all local banks on the island. Other banks have not imposed limits.

(This story was officially corrected to say that the limit was only imposed on the two biggest banks, not all.)

Reporting by Michele Kambas and Laura Noonan; Editing by Matt Robinson