Non-Cypriot lenders may see end to restrictions

As the dust settles in Cyprus and account holders are allowed increased access to their deposits, the central bank is considering lifting all restrictions on foreign banks on the island, according to reports, while the Finance Ministry in Nicosia has issued a new set of restrictions that are more relaxed than those enforced in previous weeks.

While restrictions on capital flow remain for Cypriot banks due to fears of capital flight, the Central Bank of Cyprus has reportedly asked the government’s prospective creditors – the eurozone and the International Monetary Fund – to ease regulations for non-Cypriot lenders so as to facilitate imports and exports.

Late on Friday, the ministry issued the latest package of limitations for banking business – the fifth in a row since the outbreak of the crisis in mid-March – providing for a ceiling for individual customers of 2,000 euros per month in payments and money transfers to accounts held in other credit institutions. The ministry has also set a 10,000-euro limit on payments and money transfers to accounts held at other credit institutions, per enterprise and per bank, without the need for the presentation of any documents.

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