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Cyprus to scrap all capital controls by end of March

Xinhua, March 6, 2015 Adjust font size:

Cyprus' central bank governor Chrystalla Georgadji said on Thursday that all remaining capital controls imposed as part of a banking resolution in March 2013, will be fully lifted by the end of March.

"I can assure you that it is my view and the view of the finance minister and the government that these capital controls will be lifted very soon, before the end of the first quarter," Geoghadji told journalists at a joint press conference with European Central Bank (ECB) president Mario Draghi.

Draghi had earlier announced the commencement on March 9 of his quantitative easing program, providing for the purchase of bonds of euro zone countries worth 1.1 trillion euros (1.2 trillion U.S. dollars) over the next 18 months.

Draghi presided over a meeting of the ECG Governing Council in the Cypriot capital Nicosia, which also decided to leave unchanged all interest rates currently in force.

Georghadji said that Cyprus stands to benefit by 500 million euros during the duration of the program.

"The plan will help push interests downwards and will have a positive effects as Cyprus can borrow at less cost," she added.

But the purchase of Cyprus' bonds is dependent on getting a review by its international lenders which is being delayed until the eastern Mediterranean meets their conditions on applying legislation regulating repossessions.

The government hopes to reach by the end of this week a compromise with opposition parties on a dispute over the framework of repossessions which will protect small debtors against losing their primary residence. Endit