The Ministry of Finance has announced the removal of all remaining restrictions on domestic funds transfers and banking activity in Cyprus, saying that with the achievement of specific milestones including recapitalisation and restructuring of the Cooperative Credit Institutions, progress in the implementation of banks' restructuring plans and the gradual stabilisation and restoration of confidence in the banking system, it is possible to abolish all domestic restrictions on transactions.
The only remaining restrictions are on overseas transfers, which are limited to the following
- Payments up to €1 million for transactions within the customer's normal course of business, upon presentation to the bank of supporting documents.
- Payment of employees' salaries upon presentation of supporting documents.
- Living expenses of up to €5,000 per quarter plus tuition fees for students studying overseas.
Restrictions apply only to funds that were held in Cyprus at the time that the controls were introduced. They do not apply to funds transferred to Cyprus from abroad after 15 March 2013.
In its statement the Ministry of Finance said that it intends to continually review the external restrictions on transactions with the aim of relaxing and ultimately removing them altogether as soon as circumstances allow.
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