Cyprus Bailout | South’s Banks Open at 12pm Today
Banks in the south will open late today, 12-6pm, in order for staff to become acquainted with the new money control system. These controls include restricting withdrawals to €300 per day per person and allowing only €1000 per person to be taken out of the country. Transferring funds to accounts held abroad or in another bank is also prohibited except for normal business payment transactions of up to €5,000 per day. Payments above the €100,000 level are subject to the approval of a special four-member committee, due to be appointed today. The committee aims to respond to requests within 24 hours. Transactions will also be permitted for student living expenses, up to €5,000 per quarter, for relatives studying abroad as long as supporting documents are provided and the money is wired to the student.
While two of the 26 Banks operating in the south will be subject to a levy on deposits over €100,000 depositors in the other 24 banks will not have any of their money taken, although they will be of course subjected to the money control system above. These controls are expected to be lifted as soon as the banking system is proven to be able to withstand free movement of capital.
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