Cypriot authorities further relax capital controls

Cypriot authorities have introduced further relaxation on capital controls which came into effect when banks opened for business on Friday.carbon sheetThe controls were introduced to prevent an outflow of capital following an unprecedented haircut on bank deposits a month ago as part of a bailout deal agreed by the Eurogroup.Modified restrictions introduced under a new decree by the Ministry of Finance,tire changer its tenth since they were originally introduced, are aimed at both restoring Cyprus' image as an international business centre and facilitating commercial transactions.Non-residents and companies owned by non-residents or listed on stock exchanges abroad can for the first time access their bank accounts at foreign banks, provided the banks register with the authorities and submit a guarantee that they have a standby credit facility representing 30 percent of customers' deposits.Vibrating screen 

For subsidiaries of foreign banks, the parent company must provide the Central Bank of Cyprus with a "letter of comfort" confirming that for the duration of the decree, the foreign company shall support the liquidity of its subsidiary so that it will not be forced to request emergency liquidity assistance either from the Central Bank or the European Central Bank.Foreign banks are also required to provide a list of eligible international clients,Vibrating feeder who will be able to make cashless international transfer payments out of Cyprus.Local bank customers and businesses will benefit by an increase of thresholds on bank transactions.International commercial payments through a bank can be made for sums up to 500,000 euros without any prior vetting and free domestic commercial transactions involving money transfers to other banks have gone up to 300,000 euros. 

Travellers are allowed to take cash up to 3,000 euros each time, up from a previous cap of 2,000 euros, and Cypriots can take 5,000 euros out of the country for any reason per month, up from a previous limit of 2,000.Payment abroad by credit or debit card has also been allowed up to the limit of the card tyre equipmentsaccount.Companies can withdraw 500 euros daily from bank accounts but the limit for individuals has been kept at 300 euros.Finance Minister Haris Geogiades said the lifting of restrictions has been made possible by developments over the past few days towards securing a bailout.Loan money from international lenders is expected to start flowing in early May and may reach 3 billion euros by the middle of June, when a 1.5 billion euro Eurobond issue will mature.Georgiades said he expected restrictions on transferring capital out of Cyprus to remain in force until the danger of a massive outflow is considered to be over.