Greece in the autumn will remove restrictions on the movement of capital

UNITED STATES, WASHINGTON (OBSERVATORY) — Greek authorities will lift restrictions on capital flows from September 1, the country’s finance minister, Christos Staikouras, told the Greek parliament.

“The government, in accordance with its program commitments, takes one more step ahead of its own schedule. Recall that this year a law was passed on the average reduction of real estate tax by ENFIA by 22%. And this significantly improved the debt structure of households and enterprises.” – said the official.

“Today, the government, through its financial unit, is beginning to completely lift the restrictions on capital immediately, from September 1, in cooperation with the Bank of Greece, with the consent of the Greek Union of Banks and the Union of Cooperative Banks of Greece, with the consent of the competent European supervisory authorities,” said Stykuras.

The official noted that this is an important symbolic step.

“The complete removal of restrictions on the movement of capital is one of the requirements (lenders) of the previous government. An amendment introduced by the Ministry of Finance cancels the provisions of the government decree of July 18, 2015, establishing restrictions on cash withdrawals and money transfers. This decision was adopted in a chaotic environment that period, which was formed by the frivolous policies of the then government and the irresponsible negotiations of the first half of 2015 (with creditors), “the minister said.

“Today, the destabilizing factor, the factor of insecurity in the banking system of the Greek economy, has been eliminated,” said the head of the Ministry of Finance.

According to him, today the situation in the economy is improving, as evidenced by economic indicators.

“Restoring the free movement of capital is a decisive step in normalizing the Greek economy. It will make a significant contribution to building confidence, attracting investments, stimulating growth, creating jobs and further improving the country’s credit rating. The country should become and becomes a normal country in the European Union,” said Stykuras.

Most of the restrictions on banking and the work of the Athens exchange have been lifted, but some measures are still in effect.

As Vesti.Ekonomika wrote , in May 2018 it became known that Greece would increase the monthly limit for withdrawing cash from bank accounts to 5 thousand euros from 2.3 thousand euros as part of measures to mitigate capital controls, The government said in a statement, reports Reuters.

The decision of the Ministry of Finance will enter into force after publication in the government bulletin.

Athens first imposed capital controls in the summer of 2015 to stop the outflow of cash from Greek banks at the height of the debt crisis, which led to the third financial assistance program since 2010.


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