Greek banks will open again on Monday – Le Figaro

For three weeks, the Greeks could withdraw only 60 euros a day. This limit will stay in place but will now be spread over the whole week. Or 420 euros.

Greek banks, closed on June 29, will reopen Monday and restrictions on withdrawals and certain financial transactions will be slightly relaxed, according to a decree published Saturday. For three weeks, the Greeks could withdraw only 60 euros a day. This limit remains in place but will be spread, according to the decree, throughout a week, 420 euros (7 times 60 euros), to allow to accumulate withdrawals. For example, a Greek who need a lot of cash can withdraw 200 euros on Monday, but the withdrawals for the rest of the week will not exceed 220 euros.

The Greeks will also start using their credit cards for purchases abroad. Moreover, exceptions are created with capital controls in effect since June 29, also: it is possible to make transfers of up to 5,000 euros per term for young Greeks studying abroad. The Greeks receiving medical care abroad can leave them 2,000 euros in the country. Otherwise, capital controls remain in place, that is to say that the Greeks can not transfer money abroad or out large sums in cash or open new accounts in their country .

This set of constraints must prevent cascading failures of Greek banks. But these locks are strangling the economy: capital controls have already cost 3 billion euros to Greece, out of the tourism sector, according to the center-right newspaper Kathimerini. The restrictions have scuttled the sales period, generally auspicious for retail and frozen imports necessary for the smooth running of the economy. According to the Chamber of Commerce and Industry of Athens, quoted by the daily, 4,500 containers are blocked at the port due to lack of regulation.

Once set up, capital controls are generally force long enough, especially internationally, as shown by the recent example of Cyprus. The island has maintained for two years, from 2013 to 2015, restrictions on international capital flows, gradually relaxing the time to resolve a serious financial crisis.