Cyprus imposes capital controls

Cypriot banks reopen with tight controls imposed on transactions to prevent a run on deposits after the government was forced to accept a stringent EU rescue package to prevent the country from going bankrupt.

Following are the main measures in the capital controls decree issued by the Cypriot finance ministry, which says the regime will initially stay in force for seven days:

CASH:

- Individuals cannot withdraw more than 300 euro per day from any one bank, unless they have withdrawn less than 300 euro the previous day.

- Cheques cannot be cashed, unless they were issued by a bank in another country.

TRANSFERS:

Non-cash payments or money transfers are prohibited unless:

- They are for commercial transactions. Payments below 5,000 euro have no restrictions. Payments from 5,001 to 200,000 euro must be approved by the central bank, which will consider the liquidity of the bank involved and make a decision within 24 hours. Payments above 200,000 euro will be decided upon on a case-by-case basis.

- They are for payroll, and supporting documents are presented.

- They are for living expenses or tuition fees of students who are close relatives of Cyprus residents. Transfers for living expenses are capped at 5,000 euro a quarter, and supporting documents must be supplied.

- They are for credit or debit cards. Payments are capped at 5,000 euro per month.

OTHER TERMS:

- Time deposits, where money is put in an account for an agreed period, cannot be withdrawn early unless the money will be used to pay off a loan to the same bank.

- Banks cannot make non-cash payments or money transfers that circumvent the capital controls.

- Capital controls are in place for all accounts, payments and money transfers in any currency.

EXEMPTIONS:

The capital controls do not apply to:

- Any new money deposited from abroad after March 27

- Cash withdrawals via debit or credit card from an account in another country

- Diplomatic missions.