The Bank of Cyprus announced its decision to release the blocked nine-month deposits that matured on 30 April 2014.

According to the Bank of Cyprus announcement, the decision was based on the Bank’s improving liquidity position and the increased confidence of customers, despite the Bank’s right for the automatic renewal of these deposits for another nine months.

The release of the nine-month deposits is as follows:
- One third of nine-month time deposits is immediately released and becomes available in clients' current accounts
- One third of nine-month time deposits is converted into a three-month time deposit maturing and automatically released at 31 July 2014
- One third of nine-month time deposits is converted into a six-month time deposit maturing and automatically released at 31 October 2014.

The Bank’s decision was taken in consultation with the Ministry of Finance and the Central Bank of Cyprus and reflects the Bank’s prudent liquidity management and takes into account the recent developments in the domestic and international markets.

28th Decree: Further relaxation of restrictive measures on Cyprus Banks
2 April 2014

The Ministry of Finance has announced further relaxations on the Decree relating to the restrictive measures on banking transactions within Cyprus:

  1.    The daily limit on cash withdrawals of €300 per natural person and €500 per legal person has been abolished
  2.    Increase of the limit on domestic transfer of funds from €20,000 to €50,000 per month for natural persons and from €100,000 to €200,000 per month for legal persons
  3.    Fixed term deposits prior to maturity can be terminated
  4.    Any person who is not an existing customer of a credit institution is now allowed to open a new bank account provided that the account is a new fixed term deposit created with funds from cash and the amount to be deposited exceeds €5.000 and the fixed deposit is not terminated prior to its maturity.

There have been no changes to the current Decree on international transactions.

Further relaxation of restrictive measures on banking transactions
21 February 2014

According to the Roadmap for the gradual relaxation of the restrictive measures which was published in August 2013, all milestones of the second stage have been met (Disbursement of funds under the macroeconomic adjustment program, for the recapitalisation of the COOPs, submission of the COOPs restructuring plan to the European Commission, recapitalisation of Hellenic Bank, approval of Bank of Cyprus’ restructuring plan by the Central Bank of Cyprus) and therefore it is possible to proceed with further easing of the restrictions, as follows:

  1. Abolition of the restrictive measures relating to fixed term deposits.
  2. Increase the current limit with respect to the transfer of money within the Republic, regardless of the purpose, per natural person, per month, from €15.000 to €20.000 and per legal person, regardless of the purpose, per month from €75.000 to €100.000.

The Decree on International Banks remains unchanged.

The period of validity of the two Decrees is 35 days.

Click here to download the new decree.

Central Bank of Cyprus Announces 22nd Decree
13 November 2013

The Central of Cyprus has released a 22th Decree on capital controls, with further relaxations announced.

Requirement for supporting documentation on domestic business transactions in excess of EUR300,000 to other local credit institutions relating to goods and services, has now been lifted. The credit institution may still request supporting documentation if deemed necessary.

The threshold for transactions that fall within normal business activity for payments and/or transfers of deposits/funds to accounts held abroad, has been raised from EUR500.000 to EUR1.000.000.

Payments and or transfers of deposits/funds above EUR1.000.000 per transaction are subject to the Cyprus Central Bank’s Restrictive Measures (RM) Committee.

CBC Announces 20th Decree
4 September 2013

Physical persons may transfer cashless payments or deposits/funds to accounts held in other credit institutions within the Republic of Cyprus up to €15,000 per month; legal persons are allowed to transfer deposits/funds up to €75,000 per month.

Moreover, physical persons may transfer €5000 per quarter abroad to first degree relatives who are studying abroad, for living expenses as well as tuition fees. Transfers abroad up to €5000 per physical person per month are allowed regardless of the intended purpose.

Transactions for the settlement of payments of goods or services, in excess of €300,000, are allowed provided that supporting documents are presented to the bank.

Outgoing transfers of deposits/funds from €500.001 to €1.000.000 per transaction remain subject to the Committee’s approval. Salary payments may be executed upon presentation of justifying documents.

The cashing of cheques remains prohibited, as well as the termination of fixed-term deposits before maturity. Cash withdrawals for physical persons remain restricted to €300 daily, while legal persons may withdraw €500 on a daily basis. Additionally, physical persons may transfer up to €300 per day from a notice account of a physical person, to a sight/current account of a physical person, within the same credit institution.

Central Bank of Cyprus announces 19th Decree
31 August 2013

Following the release of the new decree, residents of the Republic are allowed to open new bank accounts, provided that the account is a fixed-term deposit exceeding €5000 and must be pledged for a three months period. Termination of this deposit prior to maturity is not allowed.

The funds from the deposit are not subject to restrictive measures when the first maturity has been reached.

Furthermore, opening of a current account for the beneficiary/beneficiaries of the fixed term deposit is prohibited unless the account relates to a new loan, provided that the account can only be used for servicing the loan and not any other transactions.

Provided further that the loan proceeds must be disbursed into a sight/current account, within the same or another credit institution, within the Republic and shall be subject to the restrictive measures applicable to sight/current accounts.

Restrictions from the previous Decree remain unaltered, including the €300 daily limit on cash withdrawals.

CBC issues 14th Decree
30 June  2013

Termination of fixed-term deposits before deposit maturity, for the purpose of repayment of a loan or a credit card within a certain institution is permitted.

Payments and/or transfers up to € 500.000 per transaction can be made without the Committee’s approval, whereas payments and/or transfers from € 500.001 to € 1.000.000 per transaction, are subject to the approval of the Committee.

Non-cash payments or money transfers up to € 15.000 per month for physical entities in each credit institution are permitted, regardless of the purpose; and up to € 75.000 per month per legal entities in each credit institution regardless of the purpose.

Furthermore, it is now allowed to transfer money abroad for the payment of living expenses and tuition fees up to € 5.000 per quarter for first degree relatives (of Cypriot citizens) studying abroad.

The ceiling for exporting Euro bank notes has been raised to € 3.000 (or the equivalent in another currency).

ATM withdrawals remain limited to € 300 per day.

New banks added in the list of exempted foreign credit institutions

The list of foreign banks exempted from restrictions has risen to 14. The list currently includes:

- Arab Jordan Investment Bank SA
- Bank of Beirut SAL
- Banque BEMO SAL
- Banque SBA
- Barclays Bank PLC
- Byblos Bank SAL
- Credit Libanais SAL
- Jordan Ahli Bank plc
- Lebanon and Gulf Bank SAL
- OJSC Promsvyazbank
- Privatbank Commercial Bank
- Russian Commercial Bank (Cyprus) Ltd