Cyprus was braced for the reopening of its banks after nearly two weeks Thursday, after the government imposed tough capital controls for at least the next seven days, dpa reported. Banks will open their doors to customers from noon (1000 GMT) to 6 pm but there will be severe restrictions on transactions, including a daily withdrawal limit of 300 euros per person per day. Police and security forces were deployed outside banks to prevent trouble. Other capital controls include limiting bank transfers and credit card payments to 5,000 euros per month, and no checks will be cashed, although they can be deposited. Cypriots will not be allowed to travel abroad with than 1,000 euros in cash, while no fixed-term deposits can be terminated rematurely. Students studying abroad will be allowed to draw a maximum of 5,000 euros every three months for living expenses. Nicosia is the first government in the eurozone to impose capital controls, in an effort to prevent a collapse of the island's financial system.
