EUROZONE-GREECE/CAPITAL CONTROLS Greece relaxes capital controls, but bailout talks delayed

Record ID: 146361

  • Title: EUROZONE-GREECE/CAPITAL CONTROLS Greece relaxes capital controls, but bailout talks delayed
  • Date: 24th July 2015
  • Summary: ATHENS, GREECE (JULY 24, 2015) (REUTERS) EXTERIOR BANK OF GREECE GREEK AND EU FLAGS BANK OF GREECE ENTRANCE/SIGN "BANK OF GREECE" GREEK ECONOMY MINISTER GEORGE STATHAKIS, BANK OF GREECE GOVERNOR YANNIS STOURNARAS AND REPRESENTATIVES OF BUSINESS COMMUNITY AT THE START OF MEETING STOURNARAS (LEFT) AND STATHAKIS (RIGHT) AT START OF MEETING STOURNARAS (LEFT) AND STATHAKIS (RIG
  • Embargoed: 8th August 2015 13:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: General
  • Reuters ID: LVA3K5WCZHJXGF0YN0XLLIX9APZO
  • Aspect Ratio: 16:9
  • Story Text: Greece said on Friday (July 24) that restrictions imposed on foreign transfers for businesses have loosened, unblocking imports which were choked after the country imposed capital controls last month.
    Greek businesses have had limitations in transferring money abroad for importing raw material and other items. They have had to apply to a special-designated committee for permission to pay their foreign supplier - often a time-consuming process.
    Greece's central banker met local business associations from retail, industry and tourism sectors on Friday (July 24) in a bid to settle such delaying issues.
    Economy minister George Stathakis said that although restrictions are still in place, efforts are being made to help out the country's business community.
    "The system of the capital controls will continue with the current form, but at the same time we have normalised completely the access of the business community to their import trade as they used to be and at the same time, we have a proper functioning of the banking sector concerning export activity. So the basic idea is to get as much as we can back to a totally normal situation," Stathakis told journalists.
    Stathakis added that Greece hopes to wrap up formal talks with its international creditors that will be granting Greece a much-needed 86 billion euros (94 billion US dollars) bailout package in a three-week time frame.
    "We have agreed on a three-week schedule leading to a proper agreement according to the euro summit. I think in those three weeks the agreement will be completed," Stathakis said.
    Talks scheduled for Friday in Athens did not get off to a smooth start. A European Commission official cited security reasons for the stalling.
    Representatives of Greece's creditors -- the European Commission, the European Central Bank and the International Monetary Fund -- said they could not start until the right location was found, given the sensitivity of the talks and the fact that many Greeks are disgruntled after two painful bailouts.
    Greece reopened its banks on Monday (July 20) after it managed to secure a 7.2 billion euro bridge loan to pay its debt obligations and enacted tough reforms demanded by its lenders to start negotiations on a third bailout.
    Central Bank Governor, Yannis Stournaras said conditions for the businesses were smoothing out and that the authorities aimed to resolve pending issues in the next 10 days.
    "Today already regarding the approvals, we are very close to the monthly imports that the Greek economy had been reaching before the crisis. Therefore, in a total level we are not far from how the Greek economy was operating before the crisis, before the capital controls," Stournaras told reporters after the meeting, adding that the daily limit of money transfers has been raised from 50,000 euros to 100,000 euros.
    Constantinos Michalos, head of Athens Chamber of Commerce and Industry, said the three-week bank closures have badly hit the country's businesses.
    "The closure of banks for 3 weeks has cost the market 3 billion euros. I am hoping that we will initiate the procedures needed so that after the August holidays, we will not mourn more shutdowns (note: refers to businesses)," Michalos said.
    A deal on a new bailout programme needs to be reached by August 20, when Greece is due to pay 3.4 billion euros to the European Central Bank.
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