Cyprus prepares money controls before banks reopen

A customer enters a Bank of Cyprus branch as a Piraeus Bank logos are seen in foreground in Athens. Greece's Piraeus Bank reached an agreement on Tuesday to buy the Greek operations of three Cypriot banks for euro 524 million ($678 million).

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 on Wednesday on condition of anonymity because the measures are 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.

Under the terms of the >bailout , Cyprus is closing its second-largest bank Laiki and raiding big deposits in it, as well as in Bank of Cyprus.