By N. Malliara
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The latest loosening of capital controls still imposed on deposits held in Greek banks is expected to allow full access to cash repatriated from abroad, according to reports citing the finance ministry and the Bank of Greece (BoG).
Such a prospect would come between the conclusion of the second review of the ongoing Greek bailout, achieved in the early summer, and ahead of the pending third review of the program – the third, and by all accounts, last credit-linked bailout to be extended by institutional creditors.
Current, half of any capital imported into the country is subject to capital controls, if the money was transferred after Sept. 1, 2017. Earlier transfers of capital are subject to stricter capital controls.
The unprecedented measure was taken in late June 2015 to prevent a “bank run” in the wake of announcement that a referendum would be held in Greece on the latest offer extended by creditors’ at the time.
The controversial referendum itself came at the climax of shambolic negotiations held by the leftist-rightist Tsipras coalition government over the first half of 2015.
