The government news agency CNA quoted RCB sources as saying that the bank’s decision is a vote of confidence in the Cyprus banking system, the Cypriot authorities and the prospects of the economy on the island.

The same source said that the decision of the Russian group was based on the Cypriot government’s decision to liftrestrictions on transactions for international clients. On Friday, the Ministry of Finance relaxed significant controls on RCB and three other foreign owned banks, despite the strict measures imposed by the Central Bank of Cyprus following the Eurogroup bailout and bail-in deal two months ago.

Initially, the RCB boss had threatened to shut down the Cyprus branches and transfer the operations to Malta, following the restrictions imposed on the movement of capital.

"We believe that the majority of our clients will remain and that we will be able to gain new customers”, the bank source told CNA.

Source: Financial Mirror