Capital controls in Greece

Greece has formally ended the last remaining banking restrictions imposed four years ago during a financial crisis that saw the country nearly crash out of the eurozone.
The decision announced last week took full effect Monday as limits were lifted on international business transactions, overseas cash withdrawals and money sent to students studying abroad, among other cash curbs.

Greece is on its way to fully lifting remaining restrictions on capital transfers this year, the governor of the country's central bank said on Tuesday.

All cash withdrawals within Greece will be free from all restrictions as of Monday, as the limit of 5,000 euros per month, imposed on June 1, is lifted according to the statement issued by the Finance Ministry on Thursday.

Greece will raise the monthly limit of cash that can be withdrawn from bank accounts to 5,000 euros from 2,300 euros as part of measures to ease capital controls imposed three years ago, the government said on Thursday in a decree.

The finance ministry's decision will come into effect once it is published in the government gazette.

A decision by Finance Minister Euclid Tsakalotos, published on Thursday in the Government Gazette will further loosen the capital controls in Greece.

Greece will marginally lift the cash limit on bank account withdrawals and allow the opening of new accounts as part of an incremental easing of capital controls first introduced in 2015.

More than 20 billion euros, out of a total of 123 billion in deposits at Greek banks, are now considered to be "new money," some three months after the easing of capital controls.

This new money is not affected by cash withdrawal limits, which today amount to 840 euros per couple of weeks.

The Hellenic Bank Association (HBA) issued guidelines for capital controls in Greece. Here are 10 banking facts that borrowers should bear in mind:

Prime Minister Alexis Tsipras on Sunday announced a bank holiday and capital controls in Greece after Greeks responded to his surprise call for a referendum on bailout terms by pulling money out of banks.

Tsipras blamed European partners and the European Central Bank for forcing Greece?s hand but said that would not halt the plan to hold a referendum next Sunday.

By Yiannis Papadoyiannis

Greek banks are suffering from fresh turbulence due to the tension and the apparent collision course between Athens and its creditors. Bank stocks gave up more than 8 percent of their value on Wednesday, while the outflow of deposits was far greater than on previous days.