Roundup: Cyprus to lift all remaining capital controls since Monday

Cypriot President Nicos Anastasiades said on Friday that the remaining capital controls introduced after a chaotic bailout two years ago would be lifted on April 6.

"The lifting of all remaining control marks the definite restoration of confidence in our banking system," Anastasiades told a press conference to mark his two years in office, which also coincided with two years of bailout austerity.

He said that the scraping of all restrictions would now give the banks the possibility of raising capital and financing the economy securely.

Cyprus introduced capital controls to prevent an outflow of capital after international lenders forced Cyprus to close down a bank and to recapitalize its primary lender by seizing 47.5 percent of deposits over 100,000 euros (109,110 U.S. dollars) as part of a 10-billion-euro bailout plan in March 2013.

"As a result of hard work by all ... we can today talk with confidence of a course of full reversal," said Anastasiades.

Cyprus was pulled back from the brink of sovereign bankruptcy by the Eurogroup and the International Monetary Fund, which imposed harsh austerity measures on the country.

Beyond radically restructuring its banking system, Cyprus had to introduce salary and pension cuts, tax hikes and emergency taxes on property owners and a program for privatizing state-owned corporations, such as telecommunications, electricity and ports.

The Cypriot economy, already in recession since mid-2011, contracted further, but to a lesser extent than projected by its lenders.

Anastasiades announced a series of measures to boost prospects for a return to modest growth this year, which is forecast to pick up in 2016.

He said the government would inject 200 million euros already provided for by the 2015 budget into existing projects to speed them up, and also announced new projects at an additional cost of 80 million euros.

He also announced more measures to cut unemployment which currently stands at about 15 percent.

Anastasiades further said the government was fully committed to implementing all commitments under the bailout memorandum.

"Far from presenting a nice picture (of the current situation), we are determined to continue applying policies and actions which will allow our definite return to the markets ... We are proceeding with a well-planned program and these measures will not be the last," Anastasiades said.

Finance Minister Harris Georgiades said earlier this week that Cyprus planned to return to the markets by the end of June, after being shut out for four years. Endit