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Central Bank of Cyprus orders island's lenders to block customers' transfers

Cyprus’s central bank has written to the island’s lenders to ask them to block customer’s transfers and payments, according to reports on the island.

Cypriot website 24h revealed on Sunday that the Central Bank of Cyprus wrote to Cypriot lenders on Saturday, March 16 to ask them to stop all form of payments from their accounts, even those that were from one account at the bank to another.

The measure comes after the Eurogroup asked Cyprus to impose a one-off tax on depositors as part of its bailout.

Kathimerini English Edition understands that the capital controls do not apply to the units of Cypriot banks in Greece. Normal restrictions on cash withdrawals and electronic transfers are in place.

The depositor tax will not apply to Cypriot bank units in Greece but the branches are set to be absored by a Greek lender by Tuesday.

ekathimerini.com , Sunday March 17, 2013 (15:00)  
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