Expert review: Cyprus money controls must go

Experts say Cyprus should lift capital controls and give state, EU guarantees on all deposits

Associated Press

NICOSIA, Cyprus (AP) -- A commission of experts says Cyprus should offer a state guarantee on all deposits once it removes limits on money flows.

The Independent Commission on the Future of the Cyprus Banking Sector says this is "the best way forward" in helping to restore trust in the country's crushed banking sector and to attract foreign investment.

The four-member Commission said Thursday it's unlikely capital controls will be lifted soon, but efforts to do so should be speeded up.

The controls were imposed in March after Cyprus agreed with international creditors on a rescue plan that forced uninsured depositors to take massive losses on their savings in Bank of Cyprus, the country's largest, and the now-defunct Laiki. Bank of Cyprus absorbed parts of the smaller lender.

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