Cyprus’s central bank will impose capital controls to prevent funds going abroad, limiting what travellers may take out, restricting credit card purchases and slapping a ban on cashing cheques, local media reported Wednesday.
Under a decree that would initially be valid for seven days, individuals will be prohibited from taking more than 3,000 euros ($3,840) in cash on each trip abroad and limited to 5,000 euros a month in credit or debit card purchases while out of the country.
At the same time, companies would have to provide supporting documentation for all imports of more than 500 euros.
There was no immediate official confirmation of the details of the controls, which were published by the Phileleftheros and Katherimini newspapers.
Banks have been closed since March 16 as the nearly bankrupt island negotiated a bailout from the European Union and the International Monetary Fund.
The Central Bank of Cyprus said indications were that the country’s banks would reopen on Thursday, as scheduled, although it did not confirm this.
The reports also said savings accounts at banks may not be terminated before their expiry date unless it is to pay off a loan at the same institution.
Non-cash payments or money transfers outside Cyprus are prohibited, with some narrowly-defined exceptions such as paying by parents of tuition fees and accommodation of children studying in schools and universities abroad up to an amount of 10,000 euros per quarter.
While cheques may not be cashed, they may be deposited into accounts.
The restrictions apply to all accounts, payments and transfers, regardless of the currency, except for diplomatic missions.
Cyprus to impose limits on cash taken abroad: media
