Greek government slightly eases capital controls

[ATHENS] The Greek government on Tuesday revealed it was easing slightly the capital controls imposed on the debt-hit country by allowing individuals to transfer 500 euros (S$774) per month abroad.

Almost all transfers from Greek bank accounts to foreign bank accounts had been banned by the capital controls introduced on June 29 to stop a panicked outflow of cash from the country's banks.

According to the government decree published in the official journal Tuesday, individuals can also send out of Greece 5,000 euros every three months to their children who are studying in foreign countries and up to 8,000 euros with documents proving those expenses.

At the same time, the limit on weekly cash withdrawals within Greece remains unchanged at 420 euros.

Businesses can transfer money abroad more easily to pay for exports, but still within tight limits and with certain products given priority such as medicines, fuel and food.

The controls however have forced companies to get large bill payments to foreign suppliers approved by a government commission - a process that has slowed things down so much that some frustrated foreign companies have begun demanding payment in advance.

AFP

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