Cypriots hoped for further relaxation of the first capital controls in the eurozone Saturday after authorities on the bailed-out island dropped domestic restrictions on credit card payments.
The central bank said Friday it would make daily efforts to relax the restrictions it has imposed to avert a bank run, after lifting its 5,000-euro ceiling on domestic credit and debit card payments.
The move came after President Nicos Anastasiades said Cyprus's 10-billion-euro ($13-billion) rescue package from the European Union, European Central Bank and International Monetary Fund had saved the country from "economic collapse".
Anastasiades vowed to keep Cyprus in the euro, but had harsh words for the so-called "troika" of international lenders behind the huge bailout.
"We will not leave the euro and I stress that," the rightwinger, elected in February on the back of a promise to secure a rescue package, told a conference of civil servants.
"We will not engage in risky experiments that will endanger the future of our country."
But he criticised other eurozone states for enforcing the tough terms of the deal agreed after all-night talks in Brussels on Monday.
"Nobody can ignore the insensitivity of our partners," he said.
He also took aim at international lenders and at Cyprus's previous government for pouring money into the country's second-largest lender, Laiki, or Popular Bank, which will be wound up under the terms of the bailout.
The rescue calls for severe cuts to Cyprus's prized tax-haven style banking system -- bloated with Russian money and exposed to toxic Greek debt -- and also threatens to deepen the economic recession the small Mediterranean island was already suffering.
The most controversial element is an unprecedented raid on deposits over 100,000 euros.
Laiki is to be shuttered, and deposits there over that amount could be lost altogether.
At the Bank of Cyprus, the country's largest lender, account holders will lose 37.5 percent of their money, according to a document published by private broadcaster Sigma TV that it said was a central bank decree. The document said the lost cash would be converted into shares.
Authorities had feared the levy on deposits would cause savers to make a run on the banks when they reopened on Thursday after a forced closure of nearly two weeks.
But the panic never materialised, and the banks returned to normal opening hours on Friday.
Cyprus however remains under global scrutiny as the latest test of the eurozone's viability.
Draconian controls remain in place, including a daily withdrawal limit of 300 euros and bans on cashing cheques or taking more than 1,000 euros in cash out of the country.
Withdrawal and transfer limits have made it hard for small businesses to pay salaries and for families to make rent payments, especially as both tend to fall around the end of the month.
The finance ministry announced on Friday night that restrictive measures were being extended by five days, with a central bank spokeswoman clarifying that this meant through next week.
"The week after, we will review the situation," said Aliki Stylianou.
Foreign Minister Ioannis Kasoulides has said restrictions could last for up to a month.
Economist Yiannis Tirkides warned that they could last for years.
"These controls, we don't know when they will go away," he told AFP.
"The government says it's for a week. The foreign minister says it might be for a month. But ideally when you implement controls in a country they tend to last for years."
The euro edged slightly higher against the dollar Friday, to $1.2818 at 2100 GMT from $1.2814 late Thursday.
AFP
Sat Mar 30 2013
Who is Prabowo Subianto, incoming president of Indonesia?
A wealthy ex-general with ties to Indonesia's popular outgoing president and its dictatorial past, looks set to be its next leader.
Iran's supreme leader says Hamas leader's death will not halt 'Axis of Resistance'
The "Axis of Resistance", built up with years of Iranian support, includes Hamas, the Lebanese Hezbollah group, the Houthi movement in Yemen, and various Shi'ite groups in Iraq and Syria.
Putin says Russia willing to seek compromises between Iran and Israel
Russia is ready to help seek compromises between arch-foes Israel and Iran, President Vladimir Putin said on Friday, saying these would be difficult but possible.
What proposals will Russia push at the BRICS summit?
The proposal is also to establish a BRICS reinsurance company to allow uninterrupted shipment of goods and key commodities between members.
Indonesia's free meals plan in the spotlight as Prabowo readies for office
Prabowo calls the programme one of the main drivers of economic growth, eventually set to add an estimated 2.5 million jobs.
Astro AWANI's revamped English news website, AWANI International, launches on Oct 21
Astro AWANI's revamped English platform delivers in-depth global news and expert analysis to keep you informed on key developments.
Israeli strikes kill 33 people in Jabalia refugee camp in Gaza, medics say
Residents of Jabalia said Israeli tanks had reached the heart of the camp after pushing through suburbs and residential districts.
Liam Payne's ex-partner calls for media restraint after 'painful' death
Cheryl Tweedy used her statement to urge the media to remember they had a seven-year-old son, Bear, who could read the reports.
Analysts: Indonesia's strong MoF leadership team to boost investor confidence
Sri Mulyani Indrawati as head of Indonesia's Ministry of Finance is expected to instil confidence among investors.
Biden offers both a carrot and a stick to Israel as his term nears an end
Israel has frequently resisted US advice and has caused political difficulties for the Biden administration.
Putin says BRICS will generate most of global economic growth
Russian President Vladimir Putin will host a summit of the group in the city of Kazan on Oct. 22-24.
ISIS Malaysia's perspective of Budget 2025
An excellent rakyat-centric budget under the overarching principle of a caring and humane economy.
Budget 2025: Record increase in STR, SARA aid initiatives
The government will provide a significant boost to the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) initiatives next year.
Budget 2025: EPF contributions to be made mandatory for foreign workers – PM Anwar
The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF).
What policies to expect from Indonesia's new President Prabowo
Prabowo will be open to foreign investment, his aide has said, such as by offering investors management of airports and sea ports.
Budget 2025: Govt allocates RM470 mil to empower women's participation in PMKS
The Women's Leadership Apprenticeship Program will be intensified as an effort to produce more female corporate personalities.
Israel sends more troops into north Gaza, deepens raid
Residents of Jabalia in northern Gaza said Israeli tanks had reached the heart of the camp, using heavy air and ground fire.
Indonesia ramps up security ahead of Prabowo's inauguration
Prabowo Subianto will be sworn in as Indonesia's president on Sunday with Vice President-elect, Gibran Rakabuming Raka, also taking office.
Immediate allocation of RM150 mil for local authorities, DID to tackle flash floods
Datuk Seri Anwar Ibrahim said this allocation is intended to address the recent flash floods that hit the capital and several major towns.
Budget 2025: Sabah, Sarawak to continue receiving among highest allocations - PM
Sabah and Sarawak continues to be prioritised under Budget 2025, with allocations of RM6.7 billion and RM5.9 billion respectively.