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Greece Macro Monitor (1 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
