Cyprus 'to Limit Funds that Can be Taken Abroad'

World | March 27, 2013, Wednesday // 18:21
Bulgaria: Cyprus 'to Limit Funds that Can be Taken Abroad' Bank of Cyprus is the country's largest bank. Photo by EPA/BGNES

Cyprus may be set to impose a limit on the amount of money that can be taken out of the country, one of its main newspapers has reported.

The Kathimerini newspaper also said that authorities would impose a ban on cashing cheques, as the government prepares to announce capital controls on the banking sector.

The central bank said the report was only based on draft proposals.

Earlier on Wednesday, the boss of the Bank of Cyprus was sacked.

Cyprus is introducing capital controls as it seeks to raise 5.8 bn euros to qualify for a 10bn-euro bailout from the European Union, European Central Bank and the International Monetary Fund, the so-called troika.

Depositors in Cypriot banks with more than 100,000 euros could see 40% of their funds converted into bank shares, while those with less than 100,000 euros will not lose any funds - but face limits on what funds they can access.

The exact details of the capital controls are expected to be finalised later on Wednesday.

Speaking to the Financial Times, Cypriot Finance Minster Sarris said that the controls would be reviewed after seven days, and that some banks could be exempted altogether.

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