Further “relaxation” of capital controls in Greece

Further “relaxation” of capital controls in Greece

As of Monday, June 4, the monthly cash withdrawals from € 2,300 today will rise to € 5,000, while at the same time there will be facilitation for legal entities or businessmen for their transactions abroad, as part of their business activities.

This is stipulated by a decision of Finance Minister Euclid Tsakalotou sent for publication in the Government Gazette, which amends the restrictions on cash withdrawal and capital controls that were put in place with the Legislative Content Act of 18 July 2015.

According to the decision:

  • As of June 4, the cash withdrawal limit increases from € 2,300 to € 5,000. More specifically, cash withdrawals up to the amount of € 5,000 per calendar month, per Customer ID per credit institution, by institutions in Greece and abroad are permitted.
  • With the publication of the ministerial decision in the Government Gazette, there is an increase of the amount of euros or foreign currency that can transferred abroad, from € 2,300 to € 3,000. In particular, it will be allowed to transfer euro banknotes and/or foreign currency per person and per trip abroad.
  • The transfer of funds abroad from credit institutions and payment institutions is further facilitated. In particular, it is permissible to accept and execute orders for the transfer of funds abroad up to the amount of EUR 4,000 per Customer ID and per calendar two-month period, from 1 July 2018.
  • The publication of the Ministerial Decision in the Government Gazette facilitates the transactions of legal entities or traders abroad in the course of their business activities, by increasing the amount they can send abroad from € 20,000 to € 40,000 for each transaction per customer and per day. The above transactions will be processed directly from the branch network of the Credit Institutions.

This decision is a further step in the roadmap for the gradual relaxation of restrictions on cash withdrawals and capital transfers of 15 May 2017. It is noted that the aim is to fully lift the restrictions as soon as possible, while ensuring the financial and macroeconomic stability./IBNA