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International banks seek lifting of capital controls

11/12/2014 11:11
The Association of International Banks of Cyprus claims the lifting of all restrictions on transactions performed by international banks.

Kirill Zimarin, who was officially re-elected president of the Association of International Banks in Cyprus, speaking at the annual general meeting of the Association held in Limassol, said "the facts and the figures show that Cyprus economy is recovering, and is mature enough for capital restrictions to be lifted in full”.

“This would enable international banks to fully realise the potential they have to support Cyprus economy and Cypriot borrowers”, he added.

He stressed that “international banks are playing an ever more conspicuous and significant role and over the past few years their market share by assets has grown from 8% to 22%”.

“International banks are reaffirming their commitment to develop business in Cyprus and continue promoting Cyprus as an international financial centre”, he noted.

“International banks have significant reserves in terms of capital and liquidity, and are ready to extend their lending programmes to Cypriot companies”.

“Therefore, it’s fair to say that international banks could be among the key drivers behind the recovery and growth of Cyprus economy and its banking sector”, he concluded.
Recently, a number of other bank representatives stressed the need of full lifting of the capital controls in order for the economy and the banking sector to regain investors' trust.

Last Friday, the Ministry of Finance announced a further ease of capital controls stating that the process will move in a prudent manner based on economic conditions, giving no clear date for the full lifting of the restrictions.