News About Cyprus Bank Account
Cyprus Bank Account Developments. Nine months have passed from the abominable March 2013 and since the `infamous` Cyprus Bank Account bail-in or haircut! The movement of money within Cyprus and the outflow of money out of Cyprus were all but frozen.
Cyprus Bank Accounts were used by the Troika as a source of money for the recapitalization of the Cyprus Banks. Crippling Central Bank regulations were forced on the Cyprus Bank Account by the IMF and the Troika, all but impeding trade and business, causing havoc and heavy losses to local business and an exit stampede by the international entrepreneurs. They later accepted that `this was a mistake.`
Some of the restrictions directly affecting the Cyprus Bank Account holders were:
- A Cyprus Bank Account holder could only withdraw 3oo Euro per day.
- A Cyprus Bank Account holder could not use cash for payments; he could only use cheques, or transfers.
- A Cyprus Bank Account holder could not open another Cyprus Bank Account in the same or other Bank
- A Fixed Deposit Account holder was not allowed to end the deposit and withdraw his money. At maturity he had to renew the deposit for another six months.
- Payments for goods or services from outside the Republic could not be paid for out of the Cyprus Bank Account directly, the had to be approved and authorised by the Central Bank and that could take days or even weeks, destroying in the process small and medium businesses.
- Cyprus Bank Account holders in Laiki Bank lost the whole of their money in Laiki Bank Accounts.
- Cyprus Bank Account holders in the Bank of Cyprus lost almost 30% of their money in that bank too.
- Money to students studying abroad was restricted to 500 Euro per month.
- Cash money for people traveling abroad was also restricted to 1000 Euro per person.
- Payments by foreign businesses of invoices involving outflow of money were allowed only for up to 20 000 Euro. Above that it had to be approved by the Central Bank.
These regulations on the Cyprus Bank Account were `a spanner thrown in the works` of the business and the Cyprus Economy. A number of small and medium businesses were forced out of business as they had no funds to buy or import stock from abroad as foreign producers and providers requested cash first and then to dispatch the goods. The blocking of the Cyprus Bank Account also had a crashing effect on the building industry and the real estate prices, as the Cyprus Bank Account holders were not allowed to withdraw money to purchase a flat or a building plot and developers had no right to withdraw money from their Cyprus Bank Account to pay for labour or materials.
So these `healing regulations` slammed on the Cyprus Bank Account instead of helping the economy and create development wrought havoc and burnt earth. They brought about destruction and standstill to the Cyprus economy, some of its effects persisting up to date.
Some of the bail-in money was used to pay off international lenders instead of being used to spur development and create jobs. This was the persistent demand of the Troika, or they would walk away. The result of the Cyprus Bank Account pillage and robbery was that today unemployment stands at 27%, mostly amongst the younger generation who are mostly university graduates with LLBs and LLMs!
Fortunately many of the above regulations have today been removed from the Cyprus Bank Account or have been greatly relaxed. Regarding the collapse of the Laiki bank I can only juxtapose the fact that in the USA in the last couple of years more than 75 banks have gone bust and people lost all their money. As if this can be any comfort to the innocent Cyprus Bank Account holders who have been robbed by the Troika.
Cyprus Bank Account Regulations are Now Greatly Relaxed
The regulations today affecting the Cyprus Bank Account mostly provide that:
- Foreign Cyprus Bank Account holders can now use all the new money deposited in their Cyprus Bank Account in any way they wish. There areNO RESTRICTIONS AT ALL ON ALL NEW MONEY coming into their Cyprus Bank Account. They can deposit ten million Euro in the account and in ten minutes swift it away. This is a good indication that the Cyprus banking system is now stabilized.
- From the old money (that is money which was deposited in their Cyprus Bank Account before March 2013) they can now pay invoices for up to 500 000 Euro a time, on production of an invoice, without the need of a Central Bank approval. This has alleviated the problem to a great extent.
- The restriction on the withdrawal of cash money from the Cyprus Bank Account still remains, at 300 Euro per day, which sounds surrealistic.
- A Cyprus Bank Account fixed deposit holder can now retrieve 20% of the fixed deposit money, but the rest has to be renewed for another month.
- A new Cyprus Bank Account can now be opened by foreign businessmen and businesses although they may already be the holders of another Cyprus Bank Account, if in the new Cyprus Bank Account will be deposited money from abroad.
- Money for travelling and for students abroad has also been increased, and local businesses can pay for their imports with basically no restrictions. Also the purchase of real estate is allowed for locals, provided that the price money stays in the same bank.
The Cyprus Government and the Central Bank of Cyprus have promised that in April, all the restrictions will be lifted. We can do nothing else than wait and see! Can we? For some answers to questions regarding the Cyprus Bank Account follow this link to the Central Bank of Cyprus.