Cyprus Lifts Restrictions on Domestic Card Transactions

The Cypriot central bank has removed all curbs on domestic credit and debit card payments, which were imposed amid concerns of a bank run following the country's EU-led bailout.

In an announcement, the bank clarified the capital control rules it introduced this week to prevent a run on the country's banks.

The central bank clarified that, while there is a EUR 5,000 limit on credit and debit card purchases abroad, there were no such limits on domestic transactions and money transfers.

Banks in Cyprus reopened on Thursday after a two-week closure sparked by discussions on an EU-IMF bailout and amid tough capital curbs.

Banks in Cyprus had been shut since March 16 to prevent people draining their accounts as politicians scrambled to come up with a plan to raise enough funds for the country to qualify for EUR 10 B (USD 12.9 B) in bailout loans for its stricken banking sector.