Capital controls to remain in place at least until the end of 2018
Capital controls in Greece are to remain in place at least until the end of 2018, which means the country will have spent over three years under such restrictions. Capital controls came into place in the summer of 2015 in the midst of stalled negotiations between the SYRIZA and its creditors. The stand-off reached breaking point when prime minister Alexis Tsipras called a referendum and the controls were decided for fears of a bank run and when the entire banking system was close to collapsing.
Reassessing the situation will happen only after the completion of the bailout review and the disbursement of the funding tranche. A senior banking source told the Kathimerini, “Ideally, by end-2018 we will be able to speak of an end to the controls. In any case, the restrictions on deposits will be the last to be lifted,”
The Hellenic Bank Association’s Executive Committee are due to meet today to discuss proposals for the gradual easing of restrictions.