Greece Eases Capital Controls as Confidence in Banks Returns, Reports Reuters

Greece has announced a further easing of its capital controls as the country progresses on reforms mandated by its bailout agreement and as confidence in its banking system improves.

Capital controls were initially imposed in Greece last summer due to intense negotiations with international lenders that nearly led the country out of the eurozone. Since then, these restrictions have been gradually relaxed.

A recent decision by the government, published in the official Gazette, adjusts the cash withdrawal limit to 840 euros every two weeks, up from the previous limit of 420 euros per week. Additionally, individuals will now be permitted to withdraw funds for loan payments, and restrictions have been lifted on withdrawals intended for making new deposits.

For funds transferred from foreign accounts to existing Greek accounts, the withdrawal limit will also see an increase, moving from 10 percent to 30 percent of the amount transferred, effective immediately.

Officials from Greece’s banking sector have confirmed that the latest modifications to the capital controls have received approval from the country’s lenders.