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EU to monitor Cyprus capital controls closely

Published on Mar 28, 2013 4:55 PM
 
A security guard stands in front of a branch of the Bank of Cyprus, a few hours before the reopening of the banks on the island, in Nicosia on Thursday, March 28, 2013. The European Commission said on Thursday that it will closely monitor capital controls introduced by Cyprus as the newly-bailed out country prepares to re-open its banks after nearly two weeks. -- PHOTO: REUTERS

BRUSSELS (AFP) - The European Commission said on Thursday that it will closely monitor capital controls introduced by Cyprus as the newly-bailed out country prepares to re-open its banks after nearly two weeks.

"The Commission will monitor closely with the Cypriot authorities, other member states, the European Central Bank and the European Banking Authority the implementation of the imposed restrictive measures on capital movements," it said in a statement.

"The Commission will insist at all times that any restrictive measures are strictly proportionate to the legitimate objectives of preventing the immediate risk to the financial stability of Cyprus and strictly limited in duration to the time necessary for that purpose," it said.

"While the imposed restrictive measures appear to be necessary in the current circumstances, the free movement of capital should be reinstated as soon as possible in the interests of the Cypriot economy and the European Union's single market as a whole," it added.

 
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