Cyprus prepares money controls before banks reopen

An employee of Bank of Cyprus gestures and shouts during a protest at Cyprus central bank in capital Nicosia, Cyprus, Tuesday, March 26, 2013. Cypriot businesses were under increasing strain to keep running on Tuesday after financial authorities stretched the country
Petros Karadjias

NICOSIA, Cyprus Cypriot authorities are preparing limits on how much money depositors can take out of their accounts a day before banks are set to reopen.

A banking official said Wednesday -- on condition of anonymity because the measures have yet to be officially announced -- that they include restrictions on large-scale money transfers from the country's two largest lenders to avoid a run.

But authorities are looking to raise the daily withdrawal limit from 100 euros to 300 euros (from $130 to $386), while payroll payments will be allowed in order to help businesses.

The restrictions will be kept for at least a week.

Banks have been shut for nearly two weeks as politicians sought a plan to raise the funds that would qualify the country for international bailout loans.