Cyprus scraps control on businesses sending money abroad

(NICOSIA) - Cyprus scrapped Friday its last controls on businesses transferring funds abroad, another step toward abolishing draconian measures imposed in 2013 to avoid a run on banks.

The finance ministry issued a decree that transfers above two million euros ($2.4 million) no longer need approval. This comes a month after the ceiling on free transfers was raised to that level.

The decree also eases controls on the amount of money individuals may transfer abroad, but does not eliminate them altogether.

People will now be able to transfer 20,000 euros from the country each month, double the previous limit.

At the same time, those travelling abroad may now take as much as 10,000 euros per journey, up from the previous limit of 6,000 euros.

The ministry said improved trust from international markets and confidence in the financial system had allowed the easing of restrictions.

The authorities closed the banks for two weeks in spring 2013 as they put the final touches on a 10-billion-euro ($11.9 billion) bailout by the European Union and International Monetary Fund.

They imposed a raft of measures on domestic and international capital movements when the banks reopened.

All domestic capital restrictions were lifted last May, with the prohibition on opening bank accounts being the last.

Cyprus aims to abolish all remaining controls when there is sufficient progress on its bailout programme, investor confidence is fully restored and the banking system stabilised.

After a three-year recession Cyprus expects to return to marginal growth this year.