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Capital controls: how Greece is safeguarding the banks

Greece introduced a raft of collateral controls on Jun 29 to stop a panicked outflow of income from a country’s banks, in a thespian escalation of a financial crisis.

While some of a measures have been relaxed, many Greeks sojourn incompetent to lift out several slight sell such as transfers to bank accounts in other countries. Here is a outline of a collateral controls.

LIMITS ON CASH WITHDRAWALS

After concerned business flocked to ATMs, desiring their income competence be safer underneath a mattress than in a banks, a supervision imposed a daily withdrawal extent of 60 euros ($66) per chairman per day. From Monday, people have been authorised to repel several days’ value of income during once.

Greek tourists abroad also found themselves limited to a daily limit, and incompetent to use their credit cards. A supervision direct released Friday settled that travelling Greeks will now be authorised to make a one-off send of adult to 2,000 euros per trip.

Greece’s absolute shipping attention on Friday won a benefaction on income withdrawals, with burden companies means to repel adult to 50,000 euros daily. Other companies will be means to advantage from identical concessions, though a Bank of Greece has nonetheless to pull adult arrangements.

TRANSFERS TO FOREIGN ACCOUNTS

Almost all transfers from Greek bank accounts to unfamiliar bank accounts are banned. The dual categorical exceptions are Greek students abroad, who can accept 5,000 euros per quarter, and adults receiving medical caring in other countries, who can make a one-off send of 2,000 euros.

Citizens are not authorised to open bank accounts in other countries.

BILL PAYMENTS TO OTHER COUNTRIES

Companies have had to get vast check payments to unfamiliar suppliers authorized by a supervision elect given Jun 29 — a routine that has slowed things down so most that some undone unfamiliar companies have begun perfectionist remuneration in advance.

Professional associations have reported that thousands of shipping containers sojourn stranded in Greek ports due to unsettled bills.

On Friday, a supervision pronounced banks themselves would now be means to authorize check payments of adult to 100,000 euros — adult from 50,000 euros — to speed adult a work of a executive supervision commission.

Companies will also now be authorised to compensate their suppliers if they reason accounts in a same bank.

BUYING SHARES

The batch sell was dangling on Jun 29 and Greeks sojourn incompetent to buy shares. A preference is approaching in a entrance days on when a sell can reopen.

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Article source: http://www.globalpost.com/article/6621637/2015/07/25/capital-controls-how-greece-protecting-its-banks

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