Isarescu expects capital controls will last for several weeks to several months.
To secure EUR10 billion in international aid, Cyprus agreed to tax deposits above EUR100,000 by as much as 40% and to restructure its banking system. The Popular Bank of Cyprus, or Laiki Bank, will be split into a “good” and a “bad” bank, with the good bank merged into the country’s biggest state-run lender Bank of Cyprus.
The government has also limited credit card transactions to EUR5,000 a month, and residents may withdraw from their bank accounts a maximum of EUR300 per day. Travelers abroad may take only EUR1,000 in bank notes per trip.