ZCZC
BCN-26
GREECE-EU-IMF-BANKING
Greece to lift controls on domestic cash withdrawals
ATHENS, Sept 28, 2018 (BSS/AFP) – A limit on cash withdrawals imposed in
2015 when Greece risked leaving the eurozone will be lifted from next week,
the finance ministry said Thursday.
“All forms of cash withdrawals from institutions in Greece are allowed
without restriction as of October 1,” the ministry said in a statement.
However, restrictions remain on bank transfers abroad, with the limit
raised to 10,000 euros ($11,600) from 3,000 euros currently, it added.
Businesses will also be able to make transfers of 100,000 euros per
transaction, from 40,000 euros currently.
The capital controls measure, initially limiting cash withdrawals to 420
euros per week, was imposed in July 2015 to prevent a bank run as new Prime
Minister Alexis Tsipras clashed with the country’s creditors over plans to
eliminate austerity.
Until a compromise was reached, there was a real chance of Greece leaving
the euro.
The limits choked consumption, imports and exports, and were followed by
the shutdown of thousands of businesses.
The restrictions were gradually relaxed as economic conditions improved.
Greeks are currently able to draw up to 5,000 euros a month.
BSS/AFP/HR/1010