Katseli: Greece could Lift Capital Controls within Months if Three Terms are Met

Capital controls in Greece could be lifted soon if three important terms are met, according to Hellenic Bank Association head Louka Katseli.

Speaking to Deutsche Welle on Tuesday, on the sidelines of the Greece-Germany Business Forum in Berlin, Ms Katseli expressed optimism that such a development could happen in the coming months.

“It will depend on the steps to be taken in the coming months. The steps are specific. First, the evaluation of Greek reforms must be completed, which we hope will happen as soon as possible. Secondly, the ECB should put us in the normal flow of funding, so that we as Greek banks can borrow like all other European banks with low cost. I imagine that, immediately after, the restrictions on capital movements will be lifted. I hope all this happens in the coming months”, she said.

Moreover, Ms Katseli, who is also the chairman of the National Bank Board, assured that after the recapitalization process, Greece’s banking system is on track and all problems are manageable. However, she underlined that growth is impossible with capital controls.

“From our side, we are always ready to return to normality,” she said.

In June 2015, the Greek government introduced controls on bank withdrawals and overseas transactions in fear of a bank run amid the country’s economic crisis.