Legislation to lift the capital controls is expected to be submitted to the Greek Parliament and go into effect on September 1, 2019 ending four (4) years of restrictions on transfers abroad by companies and individuals.
The purpose of the restrictions on cash withdrawal and transfer of funds were to preserve the financial stability, by limiting the outflows of deposits from the banking system, as well as to protect the Greek economy from adverse macroeconomic and financial developments.
The existing restrictions on cash withdrawal and transfer of funds (bank holiday) imposed in mid-2015 will be lifted and all past delegated ministerial decisions and regulatory decisions of the Banking Approval Committee will be rendered inactive.
This decision is made after the upbeat forecasts of international financial markets about the Greek economy’s prospects as reflected in an improved cost of borrowing for the Greek state and the confidence shown by investors in the bonds issued by Greek systemic banks. This will accelerate economic growth led by domestic and foreign investment.
