|
|
Cyprus has lifted the last remaining capital controls which it imposed on its banks during the 2013 financial crisis.
The final removal, which took effect April 6, followed an easing of the controls in January when there has been a monthly cap of €20,000 on transfers by individuals to foreign banks.
The controls were put in force after the country’s banks nearly collapsed in March 2013 because of their connection to bad assets in Greece. Laiki Bank, the country’s second-biggest, was shut down as a result. Increased pressure on the country’s banks came after an EU decision to impose losses on depositors holding more than €100,000, as a condition of the country’s €10 billion bailout.
Cyprus was the only EU member state to impose capital controls during the financial crisis, however Greece has recently come under pressure to impose capital controls as depositors move money out of the country.
Nicos Anistasiades, the Cypriot president, said that the end of the capital controls means that there has been a “full restoration of confidence in our banking system and the stabilisation of economy of Cyprus”.
Full article on European Voice (subscription required)