Cyprus to issue the eleventh decree on capital controls shortly.
The Cypriot authorities are expected to issue shortly the eleventh
decree on capital controls imposed on the island`s banking sector
following a Eurogroup agreement over a e1/410bn euro international
The financial rescue of a faltering business or other organization. Government guarantees for loans made to Chrysler Corporation constituted a bailout.
that forced major depositors at its two biggest lenders to pay
part of the cost of the rescue.
Under the tenth decree, issued on April 25, Payments and money
transfers (for any purpose) from one financial institution to another
within Cyprus have been extended from e1/43,000 to e1/410,000 monthly
Payments and transfers from one bank to another within Cyprus are
now capped at e1/4300,000 per transaction for the purchase of
. Any transactions over and above this amount — again for the
purchase of goods or services — are permitted provided that
documentation is presented.
Payments and/or transfers within the country, for transactions
falling under a bank account holder’s usual business activity, are
extended to e1/4500,000 per transaction on submission of documentation;
for amounts above e1/4500,000, approval is required from a special
Money transfers abroad per individual per month (for any purpose)
are extended to e1/45,000 from e1/42,000 previously.
Payments within the country via debit, credit or
tr.v. pre·paid, pre·pay·ing, pre·pays
To pay or pay for beforehand.
allowed. And persons travelling abroad may take with them e1/43,000 per
trip (from e1/42,000) or the equivalent in another currency.
Under the e1/410 billion financial assistance agreement, Cyprus
Popular Bank, the island’s second largest lender will be wound
down, with its uninsured deposits (over e1/4100,000) estimated to take
losses up to 80%. The bank’s good part (assets and insured deposits
below e1/4100,000) will be absorbed by
Bank of Cyprus
, the island’s
biggest lender, whose insured depositors may take losses up to 60%.
Copyright Financial Mirror. All right reserved.
Provided by Syndigate.info an Albawaba.com company