Cyprus Capital Control Details Revealed

Tyler Durden's picture




 

As of now, the banks are still expected to open tomorrow; some of the details of the capital controls to be put in place have been leaked (via Phileleftheros):

  • *CYPRUS CONTROLS APPLY TO ALL ACCOUNTS, CURRENCIES
  • *CYPRUS BANK CONTROLS INCLUDE CURBS ON CASHING CHECKS
  • *CYPRUS BANK CONTROLS TO BE IN FORCE FOR 7 DAYS
  • *CYPRUS CURBS INCLUDE BAN ON ENDING TIME DEPOSITS
  • *CYPRUS CURBS TO INCLUDE PAYMENTS ABROAD

So no outflows allowed to a foreign country (cough Russia cough) and for only 7 days (Pluto Standard Time?); furthermore, talk is that carrying cash of over EUR3,000 across the border wil be banned.

 

Via Philenews,

The restrictions will be placed on transactions when banks are open a decree issued by the Ministry of Finance. Then we present the provisions of the Ordinance provided that changes may be made, as yet not announced officially. Since the opening of bank risk and deposit outflows because under these conditions created an emergency situation, and because for ensuring public order and public safety and for overriding reasons of public interest, the Minister of Finance, in exercise of the powers conferred by Articles 4 and 5 of the restrictive measures in trade in Case of Emergency Act of 2013, upon the recommendation of the Governor of the Central Bank will issue a decree provides for the following:

 

A) No cashing checks. Provided that may deposit checks into account.

 

(B) Any non-cash payment or money transfer outside the Republic, except:

  • (i) payments for commercial transactions within the ordinary activities of the client by presenting documentary evidence. Not require the production of documents for amounts not exceeding €500.
  • (ii) payment of salaries of employees working outside the Republic
  • (iii) subsistence expenses up to €10,000 per quarter tuition and persons studying abroad and first-degree relatives of persons who have their habitual residence in the Republic, with the presentation of relevant evidence. Provided that all payments made to the beneficiary.
  • (iv) Payments or transfers outside the Republic by debit or credit card or prepaid, to €5,000 per month per person for each institution.
  • (v) Payments of claims by insurance companies
  • (vi) or other payments and money transfers is ensured provided that prior approval of the Commission

(C) Any termination filing deadline before the specified end date unless the product will be used to repay the loan within the same institution.

 

(D) The transport of euro banknotes or foreign currency in excess of the amount of € 3000 or the equivalent in foreign currency per person per trip abroad. The Director of Customs shall implement this measure.

 

(E) Financial transaction, payment or transfer, which is not completed before the commencement of this Ordinance, subject to the provisions of this Order restrictive measures.

 

(F) prohibit a credit institution to perform cashless payments or money transfers that aim to circumvent the restrictive measures.

 

(G) The restrictive measures apply to all accounts, payments and transfers, regardless of the currency.
 
Exceptions.

 

Excluding restrictive measures:
(A) All money transferred from abroad to the Republic.
(B) Diplomatic Missions
(C) financial transactions on their own behalf institution
(D) Payments authorized by the Commission ?
(E) The Republic ?
(G) The Central Bank. This Order is valid for a period of seven days commencing from the date of publication in the Official Gazette.

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Wed, 03/27/2013 - 10:18 | 3381108 machineh
machineh's picture

7 days, 7 weeks, 7 years

Wed, 03/27/2013 - 10:19 | 3381116 Ethics Gradient
Ethics Gradient's picture

Until the banks open?

Wed, 03/27/2013 - 10:21 | 3381130 machineh
machineh's picture

Until they make the controls stricter to plug leaks.

This is just the beta version of CapControls 1.0.

Now recruiting testers ...

Wed, 03/27/2013 - 10:26 | 3381176 gmrpeabody
gmrpeabody's picture

Given a little more time, the capital control measures will soon resemble Obama care, 1700 pages of what you can't do but they can. Too funny.

Wed, 03/27/2013 - 10:29 | 3381200 McMolotov
McMolotov's picture

It's always the end result of statism run amok. Everyone becomes a criminal of some sort in the eyes of "the law."

Wed, 03/27/2013 - 10:39 | 3381230 AlaricBalth
AlaricBalth's picture

 

Dijsselbloem: claim on Cyprus gas

Should Cyprus more gas exploitation, then the proceeds to repay the emergency loan of € 10 billion, says Minister Dijsselbloem.

This is from Financial Daily in the Netherlands one hour ago. Looks like another European resource grab.


 

Wed, 03/27/2013 - 10:40 | 3381241 McMolotov
McMolotov's picture

It's like dealing with loan sharks.

Wed, 03/27/2013 - 10:43 | 3381252 notbot
notbot's picture

Reopened in 7 days, because by then everything will be fixed and people surely won't run on the banks.

Who are they kidding???

 

 

Wed, 03/27/2013 - 10:48 | 3381273 gmrpeabody
gmrpeabody's picture

The banks will re-open tomorrow and operate during normal business hours. However, due to safety concerns, customers will not be allowed back in until such time as their welfare can be guaranteed.

Wed, 03/27/2013 - 10:54 | 3381292 Cdad
Cdad's picture

Flash:  Bernanke comments...hearing that The Federal Reserve Bank is NOT considering capital controls.  Prefers capital outofcontrols, instead.

Wed, 03/27/2013 - 10:58 | 3381303 redpill
redpill's picture

This is when the snake starts eating its own tail. What we're about to see unfold in Cyprus is going to be very ugly.

Wed, 03/27/2013 - 12:24 | 3381663 Rubbish
Rubbish's picture

Countdown to Armageddon.

Wed, 03/27/2013 - 10:47 | 3381275 espirit
espirit's picture

Just a coincidence?

 "United States prosecutors have asked Liechtenstein to hand over data on foundations and other financial vehicles as part of their investigation into tax evasion by wealthy Americans."

By Friday...

http://news.yahoo.com/u-asks-liechtenstein-data-swiss-banking-probe-074807421.html

Wed, 03/27/2013 - 11:00 | 3381316 toys for tits
toys for tits's picture

Cyprus failed to macro-manage their economy and now believe that their situation will improve by micro-managing it?

Wed, 03/27/2013 - 11:52 | 3381522 Nussi34
Nussi34's picture

Looks like the Euro is facilitating trade and making things easier!

At least controlling all of this will create a lot of "jobs"!

Wed, 03/27/2013 - 11:58 | 3381549 Nussi34
Nussi34's picture

Looks like the Euro is facilitating trade and making things easier!

At least controlling all of this will create a lot of "jobs"!

Wed, 03/27/2013 - 10:43 | 3381257 Pladizow
Pladizow's picture

How do the Cypriots say "Gold Bitchez!"

Wed, 03/27/2013 - 13:37 | 3381954 Jonas Parker
Jonas Parker's picture

Molon labe?

Wed, 03/27/2013 - 10:39 | 3381243 machineh
machineh's picture

How is Cyprus going to engage in costly undersea gas exploration, when it has no capital?

Answer: foreign partners will demand most of the equity.

Let the natural resource looting begin!

Wed, 03/27/2013 - 10:42 | 3381258 JPM Hater001
JPM Hater001's picture

"carrying cash of over EUR3,000 across the border wil be banned."

Me and 100 of my best friends are going to go for a boat ride...each carrying $3000

Wed, 03/27/2013 - 10:55 | 3381294 Augustus
Augustus's picture

Since the foreign partners will provide ALL of the funding for development, it is simple greed for them to want to get the investment returned.  everyone knows that foreign capital can never be reclaimed from a broke state.  Maybe they can make a deal with the ruskies.

Wed, 03/27/2013 - 10:42 | 3381251 Van Halen
Van Halen's picture

Holy crap! The balls of these bankster motherfuckers!

Wed, 03/27/2013 - 11:21 | 3381276 AlaricBalth
AlaricBalth's picture

This report was just released by the Congressional Research Service on March 15, 2013.

Europe’s Energy Security: Options andChallenges to Natural Gas SupplyDiversification

http://www.fas.org/sgp/crs/row/R42405.pdf

It discusses Europe's dependence on Russia (36%) for Natural Gas and the need to diversify. 

"If trends continue as projected, Europe’s dependence on Russia as a supplier is likely to grow. And, while it could be in Europe’s interest to explore alternative sources for its natural gas needs, it is uncertain whether Europe as a whole can, or is willing to, replace a significant level of imports of Russian natural gas. Some European countries that feel vulnerable to potential Russian energy supply manipulation may work harder to achieve diversification than others."

Bankrupt Cyprus. Claim their NG. Reduce vulnerability to Russia.

Good timing huh?

Wed, 03/27/2013 - 10:49 | 3381281 Divine Wind
Divine Wind's picture

 

 

Brahahahahaa

I bet Turkey has some things to say about this.

The territorial disputes are nowhere near being settled.

 

Wed, 03/27/2013 - 10:20 | 3381123 Super Broccoli
Super Broccoli's picture

if banks open tomorrow and cap control stops in a week, i swear i eat my wallet !

Wed, 03/27/2013 - 10:30 | 3381210 McMolotov
McMolotov's picture

Is it the one that says, "Green Mother Fucker?"

Wed, 03/27/2013 - 11:14 | 3381368 Alpo for Granny
Alpo for Granny's picture

Say it again. Say withdraw again. I dare you I double dare you motherfucka say withdraw one more goddamn time.

* Apologies to ZH poster Say What Again for stealing his thunder but granny has has too much knob creek this morning and could not help herself*

Wed, 03/27/2013 - 10:57 | 3381301 Dr. Engali
Dr. Engali's picture

Eat your iPad..it's more nutritious.

Wed, 03/27/2013 - 14:29 | 3382270 Colonel Klink
Colonel Klink's picture

Hope it's an iWallet, I hear they're edible.

Wed, 03/27/2013 - 10:21 | 3381126 localsavage
localsavage's picture

What you don't think they will fix this the first time...cough Greece cough Greece

Wed, 03/27/2013 - 12:22 | 3381649 viahj
viahj's picture

quote machineh: "7 days, 7 weeks, 7 years"

7x3=21

Wed, 03/27/2013 - 13:39 | 3381967 Jonas Parker
Jonas Parker's picture

More like 7 to the 7th power...

Wed, 03/27/2013 - 10:18 | 3381113 mdtrader
mdtrader's picture

7 days because the banks probably won't last 7 days lol.

Wed, 03/27/2013 - 10:19 | 3381117 TeamDepends
TeamDepends's picture

This time we will definitely read the fine print.

Wed, 03/27/2013 - 11:09 | 3381353 Urban Redneck
Urban Redneck's picture

and break out your SWIFT handbook, the whole google-speak "financial transactions on their own behalf institution" is loophole big enough to run an entire bank-run/robbery through...

Wed, 03/27/2013 - 10:25 | 3381118 Id fight Gandhi
Id fight Gandhi's picture

7 fat years, 7 lean years...

This really has to be the beginning of the end of the Euro.

Wed, 03/27/2013 - 10:19 | 3381121 frenchie
frenchie's picture

need large family, each takes a bag of 2999 and hop

 

Wed, 03/27/2013 - 10:23 | 3381149 machineh
machineh's picture

After 7 days, they likely will chop that limit to 1,000.

Cypriots better get while the getting is good.

It only gets worse.

Then it's "Bailout 2" time.

Wed, 03/27/2013 - 10:25 | 3381165 kliguy38
kliguy38's picture

There will be no way to stop capital controls.........

Wed, 03/27/2013 - 23:59 | 3384265 StychoKiller
StychoKiller's picture

Bring a couple of yer buddies to the bank (Smith & Wesson!)

Wed, 03/27/2013 - 10:27 | 3381182 McMolotov
McMolotov's picture

Cypriots are now terrrrists if they try to control their money in "unauthorized" ways. Coming soon to a bank near you.

Wed, 03/27/2013 - 10:22 | 3381150 Cdad
Cdad's picture

Long Mediterranean pirates here.  

Wed, 03/27/2013 - 10:23 | 3381155 Gmpx
Gmpx's picture

I can offer my family members - 500 EUR each per hop

Wed, 03/27/2013 - 10:20 | 3381122 LoneStarHog
LoneStarHog's picture

May people leave the country with The Family Jewels, or is castration mandatory?

Wed, 03/27/2013 - 10:21 | 3381139 Winston Churchill
Winston Churchill's picture

Not if you leave your first born as collateral.

Wed, 03/27/2013 - 10:21 | 3381125 the iD
the iD's picture

if you keep taking it, expect them to keep giving it to you.

Wed, 03/27/2013 - 10:35 | 3381222 j0nx
j0nx's picture

/thread. Same here in the states. As long as people keep slurping it down then they are gonna keep feeding it to them. It really does always boil down to that and has throughout history. Not sure why people think what's going on now is any different than what was going on 500 years ago...1000 years ago...10,000 years ago.

Wed, 03/27/2013 - 17:13 | 3383082 JohnnyBriefcase
JohnnyBriefcase's picture

I also don't understand the idea that the past cannot happen again. Like we are somehow immune from thousands of years of human history. Why? Because we have cars and computers? really?

 

What a solid foundation!

Wed, 03/27/2013 - 10:22 | 3381132 NoWayJose
NoWayJose's picture

Pssssst - Cyprus is an ISLAND.... you don't carry anything across the border without getting wet...

Wed, 03/27/2013 - 10:23 | 3381154 localsavage
localsavage's picture

And don't try to take your gold out by boat.  We all know how that ends.

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