The Ministry of Finance in Cyprus has announced a road map for the lifting of restrictions on bank transactions imposed in March 2013. In a statement issued on 18 September 2013, it was announced that restrictive measures enforced on grounds of public interest and to ensure stability of the financial system will be gradually removed. Although no fixed calendar dates were given, the roadmap links the relaxation steps to specific key milestones related to the recapitalisation and restructuring of the Cypriot banking sector, as these are instrumental in rebuilding depositors’ confidence in the Cypriot banking system and help economic recovery.
The relaxations will take place in two main phases: firstly, the restrictive measures on transactions within the Republic will be abolished and, subsequently, the restrictive measures on transactions for the cross border movement of capital will be abolished. The restrictive measures linked to the particular relaxation stage will be removed in a step by step process, having regard to the prevailing level of confidence in the banking system and to financial stability related indicators, including the liquidity situation of credit institutions, it is added. At the same time, the Ministry of Finance underlines that the removal of the restrictive measures could also be accelerated if conditions allow