Press Release: Statement by the European Commission on the capital controls imposed by the Republic of Cyprus

The European Commission takes note of temporary restrictions on the free movement of capital, including capital controls, imposed by the Republic of Cyprus as part of a series of measures to prevent the significant risk of uncontrollable outflow of deposits which would lead to the collapse of the credit institutions and to the immediate risk of complete destabilisation of the financial system of Cyprus.

While the imposed restrictive measures appear to be necessary in the current circumstances, the free movement of capital should be reinstated as soon as possible in the interests of the Cypriot economy and the European Union's single market as a whole.

ESO: Background information: Find all further information in ESO on the Cyprus economic and banking crisis http://www.europeansources.info/advSearchLink?keyword=Cyprus%20economic%20bailout%20&searchOption=all

EUObserver, 02.04.13: Bailout paper gives Cyprus four years to balance budget http://euobserver.com/economic/119649

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