Nicosia - AFP
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. 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. There was no immediate official confirmation of the details of the controls, which were published by the Phileleftheros and Katherimini newspapers. Under a decree that would initially be valid for seven days, individuals will be prohibited from taking more than 3,000 euros (US$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. 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. Meanwhile, Cypriot parents, many of whom have children studying in schools and universities abroad, will be allowed to transfer the cost of tuition and up to 10,000 euros per quarter for accommodation costs. Also permitted will be payment of claims by insurance companies. The restrictions apply to all accounts, payments and transfers, regardless of the currency, except for diplomatic missions.