Capital control in Cyprus

The finance ministers of Cyprus have plans to impose a limit on the cash withdrawals per week, according to BBC. The controls of the draft capital of Cyprus include export limits on Euro and a ban on the cashing of cheques. The deposits with sums higher than 100 000 Euros will find 40 % of the funds being turned into bank shares. According to the finance minister of Cyprus Michalis Sarris, the depositors that have less than 100 000 Euros in their accounts will not be affected by the new rules applied.

Yesterday, the chairman of Bank of Cyrus handed his resignation and was examined by the board of directors of the bank. At the same time, the Department of Work and Pensions in UK announced that the British pensions will no longer be paid in bank accounts in Cyprus and asked the expats living in Cyprus to open accounts in UK. In Greece, Piraeus Bank will acquire all deposits, branches and loans of Greek citizens that were owned by the Bank of Cyprus, Laiki Bank and Hellenic Bank. The finance minister of the European Union announced that he sees no signs of serious withdrawals of savings in the zone after the crisis in Cyprus.

The economy of Cyprus will be hit badly, but there are hopes that it will recover in a short period of time. Currently, the banks in Cyprus are closed and are expected to reopen on Thursday.