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One year capital controls in Greece…

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WP_20150824_055Greece Macro Monitor (August 2016)

One year capital controls in Greece

Impact on the domestic economy & lessons from the Cypriot experience

Summary of views 

  • Capital Controls (CCs) in Greece:
  • not a mechanism for balance-of-payments support, exchange rate stability or protection of FX reserves,
  • but a temporary policy aiming to curtail deposit outflows & safeguard domestic financial system stability, in a period of high uncertainty regarding:

i. political developments; and

ii. domestic macroeconomic prospects

• Capital controls were imposed on June 28 2015. Restrictions have been gradually relaxed, with the latest changes taking place on 22 July 2016. The most important of these changes include:

  • increase of the maximum cash withdrawal limit to €840 bi-weekly, per depositor, per institution;
  • increase (to 30% from 10%) of cash withdrawal limit for funds transferred from abroad;
  • 100% cash withdrawal for funds credited in cash from 22 July 2016 onwards, in accounts owned by legal entities and natural persons; and
  • early loan repayment in part or in full without exceptions

Viewers can log herebelow and ead the full report:

GR CCs _ Eurobank Research_1 August 2016


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