Greece Examining Full Lift of Banking Restrictions

Following an announcement in May, the Greek government is reportedly expected to lift all banking restrictions – in place since June 2015 – in the coming fall.

According to Reuters, which cites a senior official, the country’s central bank has suggested the termination of capital controls to be carried out “in first two months of autumn”, adding that it is currently conducting an impact assessment study of the proposed move.

Reuters’ source noted that the government will be required to take legislative steps after that.

Earlier this summer, in efforts to facilitate business transactions, the Greek government was considering easing capital controls – there are currently restrictions on daily money transfers abroad for both businesses (100,000 euros) and individuals (4,000 euros) – after discussing the idea on an assessment visit by Greece’s lenders as well as with executives from the Hellenic Bank Association and the central bank.

Greek banking restrictions were introduced in June 2015 as an emergency measure to safeguard the country’s banking system from the economic crisis. The European Central Bank cut emergency funding to Greek lenders which resulted in a 60-euro per day cap on ATM withdrawals after banks were forced to shut down for three weeks.

The focus of the government is to make Greece an investor friendly destination by regaining market trust while re-opening affordable loan options.