Cyprus: cash withdrawals capped at 300 euros - 13 WTHR Indianapolis

Cyprus: cash withdrawals capped at 300 euros

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Banks in Cyprus open for the first time in more than a week today, operating for six hours from noon, but restrictions will be in place on financial transactions to prevent people from draining their accounts.

Among the capital controls, according to a ministerial decree, cash withdrawals will be limited to 300 euros ($383) per person each day. No checks will be cashed, although people will be able to deposit them in their accounts.

The controls will be in place for four days.

Banks have been shut across the country since March 16 to prevent a run on deposits while politicians worked out a new plan to secure an international bailout.

The deal was finally reached in Brussels early Monday, and imposes severe losses on deposits of over 100,000 euros in the country's two largest banks, Laiki and Bank of Cyprus.

Credit or debit card payments abroad will be capped at 5,000 euros a day.

Travelers leaving the country won't be able to take with them anything over 1,000 euros in cash -- as well as the equivalent sum in foreign currency.

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