ECONOMY

Cyprus to ease some capital controls, central bank source says

Cyprus is expected to announce a partial relaxation of currency controls on Tuesday, raising the ceiling for financial transactions that do not require central bank approval to 25,000 euros from 5,000, a central bank source said.

Cypriot authorities have also decided, in consultation with international lenders, to unblock 10 percent of a 40 percent effective freeze on large deposits in Bank of Cyprus BOC.CY under a bail-in arrangement.

The bail-in sees another 37.5 percent of deposits exceeding 100,000 euros converted to equity in the bank and an additional 22.5 percent used as a buffer which could, if circumstances warrant it, also be converted to equity.

[Reuters]