Edge of reason
Capital control grenade hovers over Greek impasse
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London
CAPITAL controls offer a grenade-like approach to breaking the Greek impasse. As Athens continues to spurn a bailout deal with European negotiators, domestic bank deposits are heading out the door. For euro zone finance ministers gathering on June 18 in Brussels, restricting Greeks' access to money in their accounts would definitely have an immediate impact - just not necessarily a good one.
On the face of it, limits to withdrawals should be imminent. Greek banks were only able to find the money to give fleeing depositors - 400 million euros (S$608.67 million) left Greek lenders on June 15 alone - by tapping 84.1 billion euros of Emergency Liquidity Assistance from their own central bank, with the permission of the European Central Bank.
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