Greek Alternate Finance Minister Giorgos Chouliarakis claimed that the capital controls that are currently restricting the Greek economy will be lifted by June 2016.
During a hearing at the Greek Parliament’s Economic Affairs Committee, Chouliarakis claimed that liquidity in the Greek economy will be fully restored in the country and therefore the restrictions can be removed. The minister further asserted that Greece’s creditors estimations are in line with Greece’s predictions.
The Greek economy has been functioning under the restraint of capital controls since the end of June. Certain restrictions have been eased but the majority are still in place.
Bank of Greece Governor Louka Katseli had noted two weeks ago that the capital controls will be lifted by early 2016.
Chouliarakis was also called to respond to why the Greek economy suffered a recession in 2015. His explanation was that private investments in Greece have declined due to restricted liquidity that was caused by creditors to pressure the Greek government to cut a deal. However the negotiations, he added, helped the government to secure smaller surplus targets.
The alternate finance minister presented improved estimations for the performance of the Greek economy for the short-term as well as the long-term. Rapid growth, which will fluctuate between 2.8% and 3.1%, is anticipated between 2017 and 2019. The figures for the Greek economy have already improved, Chouliarakis noted, and as a result the recession for 2015 will drop to 1.4% from the initially estimated 2.3%. Furthermore, recession for 2016 should be around 1.3% and not 1.5% as was previously estimated.
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