Cyprus govt ends capital ‘controls’

NICOSIA, April 6, (AFP): Cyprus on Monday signalled a return to financial normality in scrapping capital controls two years after they were imposed to halt a banking meltdown, the finance ministry said.

President Nicos Anastasiades said last week the last of the draconian measures — imposed to avoid a run on local banks — would be lifted on Monday, and the finance ministry confirmed that this has now happened.

Business leaders called the abolition of controls of “significant importance” to the economy in allowing the free flow of capital.

Business groups said the move brought “normality to the banking system and helped attract investment from overseas”.

Now that external controls have been lifted, both businesses and individuals will be allowed to transfer money abroad with no restriction.

Cyprus was the only eurozone member to have imposed such curbs.

Under the restrictions, residents were allowed to transfer up to 20,000 euros ($21,700) abroad each month, and travellers could take up to 10,000 euros with them per journey.