Greece says it has no plans for capital controls as debt crisis deepens

27 Μαΐ 2015

The Greek government on Monday ruled out imposing capital controls that would restrict the movement of money, despite fears that it is close to leaving the euro.


In a weekend TV interview, Interior Minister Nikos Voutsis, a senior Syriza member, said Greece can't pay its June IMF instalment of 1.6 billion euros unless it gets a bailout agreement.
Then on Sunday, Syriza's central committee defeated a proposal by the hard-left wing of the party to stop making its IMF payments and nationalize the banks.
That led an opposition spokesman to suggest the government would begin restricting bank withdrawals as soon as June 1 in an effort to prepare Greece for withdrawal from the euro.
If Greece fails to make its payment and pulls out of the euro, it will lead massive capital outflows from Greek banks.

Greece denies need for capital controls
On Monday, the Syriza government was scrambling to throw cold water on that scenario, with government spokesman Gabriel Sakellaridis insisting Greece was close to a bailout deal and had no need for capital controls.
"Such scenarios lack any foundation whatsoever, are malignant and are used in a completely irresponsible fashion," Sakellaridis told a press briefing. "The possibility of us having capital controls, or any other development in the banking system, quite simply put, does not exist."
Nonetheless markets across Europe fell on the prospect and the Greek stock market was down two per cent.
Greece began talks with bailout creditors to try to beat back strict austerity targets after the Syriza party won elections on Jan. 25.
And while it was able to win agreement to negotiate a package of reforms, it has yet to get the European Union to accept more lenient terms. Syriza argues that the deep cuts imposed on Greece have blocked its economic recovery.
Sakellaridis said Monday that there would soon be agreement – by the end of May or the start of June.
An estimated 30 billion euros ($33.5 billion) have flowed out of Greek banks since last year, and a sudden surge of withdrawals triggered by a missed debt payment could cause the banks to collapse.
(Πηγή: cbc.ca)
Share on:

Δεν υπάρχουν σχόλια:

 
Copyright © Onus News - All Rights Reserved
Developed by Onus News