Thaw in Capital restrictions

The authorities of Cyprus have eased the restrictions on capital movement that were brought into use in April 2013 following the bailout step – Reuters.

The limit on cash transfers abroad, without prior permissions required, would be raised up to 2 million euros, comparing to the previous 1 million euros. An individual would also be able to transfer up to 10 000 euros out of the country comparing to the previous 5 000 euro ceiling.

Those who travel abroad, would also be allowed 6 000 euro per person, from a previous 3 000 euro limit.

Capital restriction control was used to prevent a cash flight after a chaotic bailout that led to the closure of one bank and the deposits’ seizure in order to recapitalize by a second bank.

It was the first time control measures were imposed in the history of the Euro Zone.

Once first signs of stabilizing in the banking system turned up, authorities would consider easing capital control.