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Cyprus central bank to limit money movement temporarily

Nicos Anastasiades speaking this evening.

Cyprus will introduce capital restrictions to prevent an outflow of money when its banks reopen this week but the measures will be "very temporary," President Nicos Anastasiades said this evening.

"The central bank will implement capital controls on transactions," he said in a televised address to the nation.

"I want to assure you that this will be a very temporary measure that will gradually be relaxed."

Anastasiades said the bailout deal reached overnight in frantic talks with the island's partners in the eurozone was "painful" but the best under the circumstances.

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US Treasury welcomes Cyprus rescue plan

The US Treasury Department has welcomed the 'bail-in' agreement Cyprus has reached with international lenders, saying the financial stability in the eurozone was important to the United States.

The US Treasury said the agreement was "critical" and that they were monitoring developments closely.

It is critical to lay the foundation for a return to financial stability and growth in Cyprus. We will continue monitoring developments closely as details are finalized and the agreement is implemented.

In depth: Cyprus 'bail-in' not a special case after all

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Cyprus bailout deal slammed as 'legalised theft'

Protesters take part in an anti-bailout rally by employees of Cyprus Popular Bank in Nicosia on March 22.
Protesters take part in an anti-bailout rally by employees of Cyprus Popular Bank in Nicosia on March 22. Credit: Reuters

The proposed bailout tax on bank accounts in Cyprus amounts to "legalised theft" according to Yury Pyanykh, president of the Association of Russian Businessmen in Cyprus.

Mr Pyanykh told Russia's state news agency RIA Novosti the measure will be successfully challenged in court:

“This is legalized theft. It contradicts fundamental international agreements. If they approve this measure, I can only imagine the number of lawsuits that will be filed and won.”

More: Questions remain after last-minute Cyprus bailout

PM: Cyprus economic woe justifies UK austerity plan

Mr Cameron said: "The situation in Cyprus is a reminder of a couple of important home truths." Credit: Chris Radburn/PA Wire

David Cameron has said the Cypriot banking crisis serves as a "reminder" to the UK that there is "no alternative" to the Coalition's current economic policy.

"While it is very difficult, there isn't an alternative to getting on top of our deficit, to getting our public spending under control, to making our economy more prone to growth," the Prime Minister said when asked about the Cyprus bailout during a visit to Ipswich.

Mr Cameron said the dire situation in Cyprus also proved "we are better off outside the euro", adding: "We can have our own economic policy, our own monetary policy and mend our fragile economy, which is badly in need of mending."

The PM, though, said he welcomed the financial aid given to the island nation and was "glad" those with bank savings under €100,000 would not face a levy, adding: "We are good friends of the people of Cyprus".

Cyprus president returns to face nervous nation

by - Europe Correspondent

Cyprus president Nicos Anastasiades is on a flight back from Brussels now. He will return and (deliver a TV) address at 7:00pm local time (5:00pm GMT), during which he will lay out some more of the detail from the bailout deal.

He will try to calm the nerves of people in the country and stress that he did the best deal possible. Mr Anastasiades needs to restore confidence because people feel let down.

They feel their government was not properly prepared when it went into this in the first place. It now needs to do as much as it possibly can to safeguard people from the economic impact of everything that is going on.

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