Cyprus loosens some current account restrictions
NICOSIA, Cyprus (AP) — Cyprus’ government has loosened some restrictions on bank current accounts, though the majority of controls on money flows remain in place.
In a decree Friday, the finance ministry says that current accounts opened for clients taking out new loans can also be used for money transfers from abroad or other domestic banks.
The step is intended to ease bank transactions for businesses.
However, the accounts would still be subject to money flow restrictions that were imposed to head off a run in March, when the government seized part of uninsured deposits in Cyprus’ two largest banks as part of its international bailout plan. The amount that can be withdrawn or transferred abroad from the accounts will remain limited, for example.