Cyprus Economy 12th Decree, Bank Restrictions

On the 17th of May 2013 the Minister of Finance has issued the twelfth Decree order which is effective for 7 days. The amendments are the following:

a)     The amount to be transferred for natural person has been increased from €10,000 to €15.000 and for legal person from €50,000 to €75,000.

b)     The termination of the fixed deposits is now permitted according to the below terms.

The changes are:

S3 (c) The following are permitted:

(i) cashless payment or transfer of deposits/funds to accounts held in other credit institutions within the Republic up to €15.000, per month per natural person in each  credit institution regardless of the purpose.

(ii) cashless payment or transfer of deposits/funds to accounts held in other credit institutions within the Republic up to €75.000, per month per legal person in each  credit institution regardless of the purpose.

(e)  It is prohibited to terminate fixed term deposits prior to their maturity unless the funds are used

(i) to repay a loan and/or overdraft and/or credit card within the same credit institution provided

(aa) the said credit facility was granted prior to the entry into force of the Enforcement of Temporary Restrictive Measures on Transactions in case of Emergency First Decree, of 2013 and

(bb)There are no sufficient funds in a current/sight account in the same  credit institution for the repayment of the credit facility, and

(cc) The repayment amount in the case of overdraft and/or credit card is the outstanding balance at the date that this Decree enters into force:

Provided that the remaining amount of the fixed term deposit remains for the remaining maturity period under the same conditions:

Provided further that in the case of an overdraft, the limit shall be cancelled after the overdrawn amount is repaid:

Provided still further that, in the case of repayment of a credit card, the relevant termination of fixed term deposit is permitted only once during or after the entry into force of the present Decree.

 

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