ARTICLE
16 April 2015

Lifting Of All Remaining Currency Controls

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Elias Neocleous & Co LLC

Contributor

Elias Neocleous & Co LLC is the largest law firm in Cyprus and a leading firm in the South-East Mediterranean region, with a network of offices across Cyprus (Limassol, Nicosia, Paphos), Belgium (Brussels), Czech Republic (Prague), Romania (Budapest) and Ukraine (Kiev). A dynamic team of lawyers and legal experts deliver strategic legal solutions to clients operating in key industries across Europe, Asia, the Middle East, India, USA, South America, and China. The firm is renowned for its expertise and jurisdictional knowledge across a broad spectrum of practice areas, spanning all major transactional and market disciplines, while also managing the largest and most challenging cross-border assignments. It is a premier practice of choice for leading Cypriot banks and financial institutions, preeminent foreign commercial and development banks, multinational corporations, global technology firms, international law firms, private equity funds, credit agencies, and asset managers.
In the immediate aftermath of the banking crisis of March 2013 the Cyprus government imposed temporary restrictions on currency transfers in order to prevent a mass withdrawal of deposits...
Cyprus Finance and Banking

In the immediate aftermath of the banking crisis of March 2013 the Cyprus government imposed temporary restrictions on currency transfers in order to prevent a mass withdrawal of deposits then in the banking system and rapid outflow of funds.  The controls, which affected only deposits in existence at the time of the banking crisis, and not funds subsequently deposited, have gradually been relaxed following the recapitalization of the banking sector.

On 3 April 2015 the government announced the abolition of all the remaining restrictions, so that funds are freely transferable in every way, just as they were prior to the imposition of controls.

While the restrictions did not have a practical impact on most international investors, nevertheless their final abolition is a welcome confirmation of the progress that has been made in rehabilitating the banking sector and the real economy of Cyprus.

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