NICOSIA-Cyprus's government is preparing aggressive curbs on the
flow of cash out of the country, according to a decree on capital
controls described by officials to the Wall Street Journal.
The measures will be in place for one week starting Thursday,
the decree says, and will see a suspension of all non-cash
transactions outside the country. People won't be able to take more
than 3,000 euros ($,3900) in cash out of the country per person,
per trip, or the equivalent amount in other currencies. All card
transactions will be capped at EUR5,000 per month.
Bank customers will be able to pay in checks but not cash them,
the decree also specified. They won't be able to draw on money held
in time-deposit accounts earlier than the maturity date agreed on
the deposit.
The decree imposing the unprecedented measures for the euro-zone
country will apply to all bank accounts, not just Cyprus Popular
Bank PCL (CPB.CP), which is being resolved, and Bank of Cyprus PCL
(BOCY.CP) which is undergoing a radical restructuring.
The only organizations excluded from the measures will be the
Cypriot state and the country's central bank, the decree said.
Write to Matina Stevis at matina.stevis@dowjones.com
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