Cyprus capital controls to be reviewed daily: Central bank

NICOSIA (AFP) - Cyprus' central bank will review its strict capital controls on a daily basis and will attempt to "refine or relax" them where possible.

"Each day, we will measure and look to refine or relax these controls with the overriding goal of safeguarding and stabilising the Cypriot financial system," the bank said in a statement on Friday. "While these capital control measures are difficult for all of us, the promise of an improved economic environment can be realised if we work together and understand the necessity of these actions."

The central bank earlier on Friday lifted all restrictions on domestic credit and debit card transactions.

Cyprus imposed the first capital controls in the history of the euro zone to prevent a feared run on banks by domestic and foreign investors when lenders reopened their doors on Thursday after a 12-day lockdown.

It is still enforcing a daily cash withdrawal limit of 300 euros (S$477), a ban on the cashing of cheques and a prohibition on travellers taking more than 1,000 euros in cash out of the country, among other measures.

Nicosia on Monday sealed a deal for a 10 billion-euro bailout from the "troika" of the European Union, European Central Bank and International Monetary Fund, but must come up with 5.8 billion euros itself to qualify.

The harsh terms of the deal include an unprecedented raid on bank deposits over 100,000 euros and the winding up of the country's second largest bank, with analysts predicting that the island will sink deeper into recession.

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