News

Cyprus tightens ATM controls

March 27, 2013

As Cyprus banks prepare to reopen Thursday at midday, the country's finance ministry is implementing measures designed to prevent a massive outflow from deposit accounts. This includes further limits on ATM withdrawals.

On Monday, the government announced that individual withdrawals from Cyprus' two largest banks would be limited to €100 ($129). Today, the country's finance minister, Michalis Sarris, decreed that daily withdrawal limits of €300 ($387) will now be imposed throughout Cyprus.

In a state media broadcast, Sarris said "[a] lack of substantial liquidity and significant risk of deposits outflow, with possible outcome the collapse of the credit institutions" made the restrictions necessary, according to a report by the Bangkok Post.

A Reuters report said teller withdrawals would also be limited to €300, while Cypriots travelling abroad will be allowed no more than €3,000 euros per trip, and businesses may only send funds out of the country if they can prove that they are being used to pay for imports. 

The measures will remain in place for four days and then will be reviewed and relaxed as soom as the situation allows, said a state bank official.

Read more about regulatory issues.