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NICOSIA, March 21 | Thu Mar 21, 2013 1:38pm EDT

(Reuters) – Stricken Cyprus Popular Bank imposed a 260 euro per day limit on ATM withdrawals on Thursday to cope with high demand, the island’s second largest lender said in a statement.

Customers queued to withdraw funds on Thursday on widespread rumours that the bank was to be closed down, later denied by the central bank.