Bloomberg: Capital Controls to be Around At Least Until Second Half of 2016

Bank of Greece Governor Louka Katseli recently asserted that the capital controls would be lifted by early 2016.

A recent poll conducted by Bloomberg has shown little support for this estimation as 81% of the 16 analysts that responded believe that the restrictions on the economy will be in effect until at least the second half of 2016, with 25% predicting that the restrictions will be lifted in the first half of 2017.

Capital controls had been imposed in Greece at the end of June 2015. Following the agreement of a third bailout program for Greece, certain restrictions on economic activity such as daily ATM withdrawal limits have eased, but the bulk of restrictions has remain unchanged.

The next important event for the Greek banking sector is the completion of the European Cental Bank’s review of its needs, which will subsequently outline the extent of funds needed for Greek banking recapilization.

Bloomberg notes that the respondents of the survey expect that needed funds will amount to 18 billion euros.