Cyprus continues to relax restrictive measures

Restrictive Measures - Transactions

The latest relaxations pertaining to transactions were passed on 17 May 2013 in Decree No 12 under the Enforcement of Restrictive Measures on Transactions in case of Emergency Law of 2013. The relaxations are:

  • The limit of cashless payments or transfers of deposits/funds to accounts held in other credit institutions within Cyprus is increased from €10,000.00 to €15,000.00 per month per natural person and from €50,000.00 to €75,000.00 per month per legal person in each credit institution regardless of the purpose.
  • Further relaxations have been introduced on the termination of fixed term deposits prior to their maturity provided that the funds are used to repay a loan and/or overdraft and/or credit card within the same credit institution and subject to certain new conditions.

A detailed account of the relevant measures may be found in our Guide to Enforcement of Restrictive Measures on Transactions in case of Emergency Law of 2013-Decree No 12.

Restrictive Measures - Foreign Banks

Decree No 3 under the Relaxation of Restrictive Measures for Branches and Subsidiaries of Foreign Banks added eight new institutions to the catalogue of foreign credit institutions which are exempt from the capital controls in connection with transactions of their international business clients. The entire catalogue is listed below. Those banks added under Decree No 3 are marked in bold and with an asterisk. 

  • * Bank of Beirut SAL;
  • * Banque BEMO SAL;
  • * Banque SBA;
  • * Barclays Bank PLC;
  • * BBAC SAL;
  • BLOM Bank SAL;
  • * Credit Libanais SAL;
  • * Jordan Ahli Bank plc;
  • Lebanon and Gulf Bank SAL;
  • OJSC Promsvyazbank;
  • * Privatbank Commercial Bank;

Harneys has prepared a detailed guide to Decree No 3 which is available here.

Assets and Obligations - Cyprus Popular Bank

Harneys has also newly published a Guide to Changes to the Assets and Obligations of Cyprus Popular Bank from “Bad Bank” to “Good Bank.”

About Us

Harneys’ Cyprus Banking Group is at the forefront of advising on all aspects of the evolving banking situation in Cyprus. We continue to monitor all aspects of the bail-out legislation, capital controls and subsequent legal challenges.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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