Cyprus on Friday abolished restrictions on cashing cheques as it lifted most domestic capital controls imposed more than a year ago to avoid a run on the banks during bailout negotiations in 2013.
“With the new 29th decree…all restrictions on domestic transactions are lifted following the relevant agreed roadmap issued on August 8, 2013, except the opening of a new bank account,” said a Finance Ministry statement.
Capital controls lifted yesterday were a ban on the cashing of cheques and limits on domestic transactions and payments of €50,000 for natural persons and €200,000 for legal persons.
“All restrictions concerning transactions abroad remain unchanged,” said the ministry.
The €300 daily withdrawal limit and not being allowed to cash cheques were key restrictions under the capital controls regime -- while Cypriots are still not allowed to take more than €3,000 with them when they travel abroad.
International lenders are expected back on the recession-hit island to conduct a fourth review next week.
Nicosia says that the island could abolish all controls by the end of 2014 if sufficient progress was made in adopting its bailout programme and investor confidence was fully restored.