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21 Oct 2013
Cyprus finance minister signalizes capital controls to be scrapped early next year
FXstreet.com (Barcelona) - Cyprus finance minister Harris Georgiades said today before the parliament that most of the restrictions on money transfers and withdrawals, imposed on Cypriot banks under the 10 billion euro international bailout in March this year, would be lifted "before the spring" in 2014.
Georgiades, who was briefing Cypriot lawmakers on the 2014 budget, stressed however that sending money overseas could remain restricted for some more time. He pointed out that Cyprus was implementing crucial structural reforms and that it was important to develop a stable tax framework in order to boost growth.
Bank of Cyprus president Panicos Demetriades, who also spoke before the MPs, added that the country's banking sector would continue posting losses next year, but that it was nevertheless adequately capitalized. He predicted that GDP growth would drop less than the -8.7% expected by international lenders this year. The outlook for 2014 remains uncertain, he said.
As Mike Paterson from Forex Live points out: “The beleaguered island has been off the front pages for a while so this serves as a timely reminder that all is still far from good in the wake of the bail-out/bail-in earlier this year.”
Georgiades, who was briefing Cypriot lawmakers on the 2014 budget, stressed however that sending money overseas could remain restricted for some more time. He pointed out that Cyprus was implementing crucial structural reforms and that it was important to develop a stable tax framework in order to boost growth.
Bank of Cyprus president Panicos Demetriades, who also spoke before the MPs, added that the country's banking sector would continue posting losses next year, but that it was nevertheless adequately capitalized. He predicted that GDP growth would drop less than the -8.7% expected by international lenders this year. The outlook for 2014 remains uncertain, he said.
As Mike Paterson from Forex Live points out: “The beleaguered island has been off the front pages for a while so this serves as a timely reminder that all is still far from good in the wake of the bail-out/bail-in earlier this year.”