You can now read 5 articles in a month for free on BostonGlobe.com. Read as much as you want anywhere and anytime for just 99¢.

Red Sox Live

4

5

▲  9th Inning 1 outs

Cyprus limits size of bank withdrawals

Protests continued in Cyprus Wednesday. The president opened a criminal investigation into how banks nearly collapsed.

Angelos Tzortzinis/New York Times

Protests continued in Cyprus Wednesday. The president opened a criminal investigation into how banks nearly collapsed.

NICOSIA, Cyprus — The government announced severe restrictions Wednesday on access to funds held in Cyprus’s banks, hoping to curb what is nonetheless likely to be a rush to withdraw money when the banks open Thursday for the first time in nearly two weeks.

The measures, which are supposed to be in effect for a week but could be extended, prohibit electronic transfers of money from Cyprus to other countries. In addition, individuals will not be allowed to take more than 3,000 euros in cash outside the country, well below the current ceiling of 10,000 euros, or $13,000.

Continue reading below

The cap on ATM withdrawals will rise to 300 euros per day, or about $422, from 100 euros, but credit and debit card charges will be capped at 5,000 euros per person per month. Banks will not cash checks, though they will accept checks as deposits. Bank clients will not be able to withdraw money from fixed-term deposits before their maturity date.

‘‘This is a typical set of exchange control measures, more reminiscent of Latin America or Africa,’’ said Bob Lyddon, the general secretary of IBOS, an international banking association. ‘‘There is no way these will only last seven days. These are permanent controls until the economy recovers.’’

To make sure enough cash is on hand, the European Central Bank sent an airplane filled with about 1.5 billion euros in a container to Larnaca airport near Nicosia. It was loaded onto a truck and escorted by police to the central bank, said a person with knowledge of the operation. The person said the ECB had indicated it would continue flying cash to the country as needed.

Finance Minister Michalis Sarris said a flood of withdrawals was bound to happen, but restrictions would at least help stem a mass flight of deposits.

Cypriot authorities are bracing for as much as 10 percent of the 64 billion euros on deposit to be pulled out Thursday.

Some experts predict a much bigger bank run whenever the controls are eventually lifted.

Loading comments...
Subscriber Log In

We hope you've enjoyed your 5 free articles'

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com
Already a subscriber?
Your city. Your stories. Your Globe.
Yours FREE for two weeks.
Enjoy free unlimited access to Globe.com for the next two weeks.
Limited time only - No credit card required!
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.
Thanks & Welcome to Globe.com
You now have unlimited access for the next two weeks.
BostonGlobe.com complimentary digital access has been provided to you, without a subscription, for free starting today and ending in 14 days. After the free trial period, your free BostonGlobe.com digital access will stop immediately unless you sign up for BostonGlobe.com digital subscription. Current print and digital subscribers are not eligible for the free trial.