Cyprus Economy Update, Bank Restrictions 19th Decree
The Minister of Finance, Mr Harris Georgiades, issued last Friday the Enforcement of Temporary Restrictive Measures on Transactions in case of Emergency Nineteenth Decree, which has a period of validity 28 days (until August 30, 2013).

Via this Decree, the Minister of Finance is imposing some important relaxations regarding the opening of a new bank account.

By virtue of the 19th Decree, the opening of new bank account is allowed when:

                            I.          a new fixed term deposit is created with at least 5.000 EUROS cash  

                           II.          and with 3 months duration.

The termination of the fixed term deposit is prohibited before its maturity.

After the first termination of the fixed term deposit, the funds of that deposit will not be subject to the specific restrictive measures which are setting out in the Decree.

Furthermore, the opening of new bank account is permitted when the current account regards a new loan and provided that:

       I.         The account will be exclusively utilized for the servicing of the aforementioned loan (and for no any other transaction),

     II.          that the releases of the loan will be transferred into an account which is maintained within the same credit institution or other credit institution situated in the Republic.

    III.          and that the account will be subject to the restrictive measures regarding current accounts.

All the rest provisions of the Decree remaining the same as it was in the previous Decree of the Minister of Finance.