Cyprus partly eases capital controls
Cyprus has partly eased capital controls imposed to prevent a run on deposits ahead of a €10 billion IMF bailout deal last month, which includes a complete liberalisation for foreign banks, the finance ministry says.
The Cyprus Government may find it hard to convince foreign investors and credit rating agencies of the effectiveness of its fiscal consolidation efforts, as borrowing costs rise and the danger of having to resort to the European rescue mechanism looms, economists warned yesterday.