Cyprus Ministry of Finance issued the fourth decree on foreign banks, exempting two more foreign credit institutions operating in Cyprus from the capital restrictions imposed on Cypriot banks.
The are Arab Jordan Investment Bank SA and Byblos Bank SAL. After the fourth decree on foreign banks the foreign credit institutions exempted from capital restrictions is increased to 14. These are:
1. Arab Jordan Investment Bank SA
2. Bank of Beirut SAL
3. Banque BEMO SAL
4. Banque SBA
5. Barclays Bank PLC
6. BBAC SAL
7. BLOM Bank SAL
8. Byblos Bank SAL
9. Credit Libanais SAL
10. Jordan Ahli Bank plc
11. Lebanon and Gulf Bank SAL
12. OJSC Promsvyazbank
13. Privatbank Commercial Bank
14. Russian Commercial Bank (Cyprus) Ltd.
According to the decree, which will apply for seven days, all cashless payments or transfers of deposits/funds from a domestic customer to an international customer of a credit institution included in the catalogue or to such a credit institution’s own account are considered as cashless payments or transfers of deposits/funds to accounts held abroad and are subject to the provisions of any other Decree issued under the Law.
“All cashless payments or transfers of deposits/funds from a credit institution that is included in the above mentioned catalogue, for its own account or by the order of an international customer, are permitted and are not subject to any restrictive measure imposed under any other Decree issued under the Law”, the Decree states. The Decree permits “all transactions between a credit institution that is included in the catalogue and an international customer.”
“All transactions between a credit institution that is included in the above mentioned catalogue, by the order of an international customer or for their own account, and an entity outside the Republic are permitted and are not subject to any restrictive measure imposed under any other Decree issued under the Law,” the Decree adds.
It notes however that “credit institutions that are included in the above mentioned catalogue are prohibited from servicing domestic customers that maintain accounts with their Head Office or soliciting and obtaining new business from domestic customers or opening new accounts for domestic customers,” noting that “all domestic customers are also subject to the restrictive measures imposed by any other Decree issued under the Law.”