Further limits on ATM cash withdrawals

TRYING to avert a further ATM run on Cyprus’ banks, daily withdrawal limits were further limited yesterday across the two biggest banks.
The Bank of Cyprus said on its website that the maximum withdrawal amount had dropped to €120 while the Popular Bank limited daily cash withdrawals to €100 daily from 1pm yesterday.
Previously on Thursday, Popular set a daily limit of €260 on ATM withdrawals to cope with high demands as customers queued to withdraw funds after rumours that the bank was closing down.
A Popular Bank spokesman, who was not named, told Reuters the daily limit would remain in place until the bank reopens as scheduled on Tuesday, or until confirmation of continued emergency funding from the European Central Bank (ECB).
It is still unclear what will happen if and when the banks reopen although a legal framework was set on Friday by parliament placing capital controls to avoid further destabilisation of its banking sector.
The finance ministry is expected to issue an announcement clarifying what the restrictions will be and setting any further measures deemed necessary for reasons of public order and safety.
Bank customers have no idea what to expect if banks do open tomorrow.
Nigel Christodoulou, a 53-year-old married father of three said he did not know whether he would be able to meet his financial obligations because he gets paid in his UK account and transfers money to his Cyprus account every month to go towards paying bills.
He is in the rather unusual position therefore of actually needing to bring money in to Cyprus.
“Will I be able to carry on as normal, transferring money to go towards my standing orders?” he asked. “Will standing orders even work? What about online transactions?” 
Others were not sure if they will be allowed to transfer money from their Cypriot banks to accounts of their children, studying abroad. Some families have bypassed that problem by cash transfers via the post office, and with UK universities shut for English Easter that problem is pushed back for now.
The law gives sweeping powers to the finance ministry of the Central Bank governor to restrict cash withdrawals, ban or restrict interbank or same bank transactions, and restrict movement of capital, payments and transfers. It also allows for restricted use of credit, debit or prepaid cards, banning premature termination of time deposits and compulsory reprogramming of maturing time deposits.