According to media reports, the President of Cyprus stated that the country plans to lift all restrictions on capital flows next January. Earlier this year, to avoid a financial collapse, Cyprus became the first country in the Eurozone to force bank depositors to absorb losses and implement capital controls.
On April 15, the Cypriot Ministry of Finance announced a relaxation of capital controls: the monthly domestic transfer limit for individuals was increased from 2,000 euros to 3,000 euros, and the monthly transfer limit for legal entities to other domestic credit institution accounts was increased from 10,000 euros to 50,000 euros. For domestic transfers between 50,000 and 300,000 euros for business transactions, only relevant supporting documents are required, and approval from the Central Bank's designated committee is no longer needed; non-cash payments or transfers exceeding 300,000 euros for business activities can be made after committee approval; however, the daily cash withdrawal limit of 300 euros per person remains unchanged.
Recently, Cypriot President Nicos Anastasiades publicly stated that the country is earnestly fulfilling the agreements reached with international bailout institutions, which forced uninsured depositors at the country's two largest banks to bear restructuring losses, and is committed to restoring economic growth. Cyprus plans to begin lifting all capital controls next January.
He also stated that the country's primary goal at present is to create conditions for economic growth, resolve serious unemployment issues, and stabilize the financial system. Capital controls are being gradually relaxed and will be completely lifted early next year.
