Cypriot students protest against the bailout package outside the Presidential Palace, in capital Nicosia, on Tuesday, March 26, 2013. Banks across Cyprus remain firmly padlocked Tuesday after financial authorities extended the countrys bank closure, fearing worried depositors will rush to drain their accounts. The shut-down is hammering businesses, which have been without access to their funds for more than a week.(AP Photo/Petros Giannakouris)
Updated: April 29, 2013 12:16PM
NICOSIA, Cyprus — Banks in Cyprus are to open for the first time in more than a week on Thursday, operating for six hours, but restrictions will be in place on financial transactions to prevent people from draining their accounts.
Among the capital controls, 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, according to a ministerial decree that was released late Thursday.
The controls will be in place for four days.
Cyprus’ banks were closed on March 16 as politicians scrambled to come up with a plan to raise $7.5 billion so the country would qualify for $12.9 billion in much-need bailout loans for its collapsed banking sector. 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.
Since Monday’s deal, Cypriot authorities have been rushing to introduce measures to prevent a rush of euros out of the country’s banks when they do reopen.
Other capital controls include a cap of 5,000 euros on transactions with other countries. AP