No capital controls on ‘new money’
Separating “new money” flowing into Greece’s recapitalized banks from older deposits and excluding the former from capital controls has emerged in Brussels as a preferred course towards restoring normalcy to the country’s banking sector.
The measure had been a standing demand by Greek banks since capital controls were imposed in late June 2015, after the Tsipras government declared a snap referendum on an austerity package offered at the time by creditors.
Ever decreasing access to ECB liquidity by Greek banks had practically dried up credit lines in the country in the period immediately before a collapse of negotiations between Athens and its creditors in June.
Banking sources told that a successful conclusion to the first review of the Greek program (third bailout) and a lifting of restrictions on new deposits would provide an incentive for domestic depositors to place their cash in local banks.
You may be interested
Vaccinated travellers entering the UK from EU and USA will not be quarantinedPanos - Jul 29, 2021
Fully vaccinated travellers entering the UK from the European Union and the United States will not need to be quarantined…
EU signs deal for monoclonal antibody therapyPanos - Jul 29, 2021
The European Union has signed a contract with GlaxoSmithKline for the supply of up to 220,000 treatments of its investigational monoclonal antibody…
The Greek official response answering Turkey’s provocative claims to the UNPanos - Jul 29, 2021
Greece has responded in detail to Turkey’s unfounded and unsubstantiated claims it made on the UN, by sending a letter…