Greek Finance Ministry to Loosen Up Capital Controls

banksThe Greek finance ministry will add some new measures regarding capital flow that would loosen up certain restrictions that apply now.

In order to give initiatives to Greeks to return to the banks the money they keep hidden, the finance ministry now allows people who make deposits to be able to withdraw as much as they want, provided that they withdraw funds up to the newly deposited amount. At the moment, depositors cannot withdraw more than 420 euros per week.

Also, the finance ministry considers lifting the limit of 420 euros per week to restricted savings accounts of individuals and businesses, provided that the funds withdrawn will be used for house or real estate purchases.

Businesses that import goods can now make transactions of up to 5,000 euros through bank branches and not through the central branch and the Bank Transactions Approval Committee as was required until now.

Also, the finance ministry is planning to implement a measure that would allow students studying abroad and military personnel stationed abroad to be able to open Greek bank accounts and withdraw up to 2,000 euros per month.

The new legislative act doubles — from 7 to 14 million euros per day — the limit of payments Greek businesses make to companies abroad. This is in order to support imports in the fall.

 

 


  • Polycrates

    Its too soon for such a measure. Typically this is done just before an election preceded by a glowing speech from the PM of good times, recovery, stability and other nonsense. The creditors must be nervous ……..again.