THE CENTRAL Bank yesterday announced the adoption of new simplified arrangements for the payment of imports of goods and services as well as capital transfers.
The arrangements will come into effect on September 1, and are part of the Central Bank’s policy of harmonisation with the European acquis communautaire, a written statement said.
As from September 1, the EC2 form will be scrapped and payments for commodity imports will be made directly through commercial banks upon the presentation of invoices and other supporting documents.
Exports of goods will from now on be carried out without the completion of the ?E1 form upon loading the merchandise nor at the time of importing the proceeds from exports.
These arrangements, however, do not relieve exporters from the obligation of transferring the income from their exports to Cyprus, within six months from the day they were loaded, the Central Bank said.
Foreign exchange issued by commercial banks for the provision of services by non-residents would be increased from £100,000 to £500,000 without notifying the Central Bank, though for any such payment all the necessary supporting documents should be presented to the bank.
Students studying abroad would now be able to receive up to £12,000 at any time during the academic year to cover their living expenses and would also be allowed an additional amount to pay their fees as well as other incidental expenses, albeit with the presentation of all supporting documents.
All restrictions concerning the issue of foreign exchange for medical treatment abroad have been lifted, though commercial banks can only issue up to £50,000.
Any amount over that will have to be authorised by the Central Bank, the statement said.
The amount anyone over 18 can export towards portfolio investments and deposits to foreign banks has increased from £20,000 to £50,000 annually.
The Central Bank said all restrictions for residents of Cyprus securing loans for financing their overseas investments were abolished.
Borrowing by non-residents, both legal and physical persons, from local banks for financing operations in Cyprus was also free.
Funds acquired by non-residents through gifts may be transferred abroad with a minimum amount of £1 million annually or one third of the total, whichever is higher.
The remaining amount could be exported over the next two years with an annual minimum amount of £1 million.
The transfer of income belonging to non-residents such as rent, dividends, interest, etc, is already free and would be made through commercial banks upon the presentation of the proper documents.
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