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Monday, June 29, 2015

Greece sets capital controls, 6-day bank shutdown

ATHENS: Greece imposed capital controls and ordered banks to close temporarily after the European Central Bank froze a vital financial lifeline following the breakdown of bailout talks between Athens and foreign creditors.
Here are the main measures adopted by the government:
* Banks will close until to July 6. All credit institutions in Greece, including branches of foreign banks, are affected.
* The finance minister may shorten or extend the bank holiday period.
* ATMs will open from Monday afternoon. Daily cash withdrawals will be limited to 60 euros. The limit can be changed by the finance minister.
* Payments via debit or credit cards to accounts within Greece and online banking transactions within Greece will be allowed but payments and transfers to accounts outside Greece are prohibited.
* Cash withdrawals at ATMs with bank cards that have been issued by foreign banks will be allowed. 
* Withdrawal limits may be set by the finance minister.
* All other transactions will not be permitted.
* A special committee will approve banking transactions deemed necessary to safeguard a public or social interest, including medical expenses or pharmaceutical imports.
* Pension payments will be exempt from capital controls.
* Interest surcharges on due payments will not be allowed during the bank holiday period.
* Banks breaching the rules face fines of up to 10 percent of the amount of any transaction violating the control measures. - Reuters

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