With Cypriots still barred from taking out more than 300 euros ($390) per day from bank accounts as part of capital controls imposed by the government, four foreign banks have been exempted and will be allowed no-limit money transfers and withdrawals for international clients, although domestic accounts will still be cappedĀ for now.
Cyprus imposed the controls as well as confiscation of up to 100 percent of bank accounts over 100,000 euros ($130,000) in return for an international bailout of 10 billion euros ($13 billion) to keep the banks and economy from collapsing. The crisis was caused by the banks overexposure to Greek bonds that were devalued 74 percent and bad loans to Greek businesses that failed during that country’s economicĀ near-collapse.
The Finance Ministry said in a statement Friday that the exemption extends to the Cyprus branches of Lebanon’s BLOM Bank, the Lebanese and Gulf Bank, Russia’s OJSC Promsvyazbank and Russian Commercial Bank. However, limits which include a daily withdrawal cap of 300 euros still apply to the banks’ domestic clients.
Cyprus imposed the limits in March to prevent a bank run after it agreed on the deal which requires the government to come up with 13 billion euros ($17 billion) in savings and revenues while making bank depositors pay for the mistakes of bank managers, none of whom are being prosecuted.
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