epa04826153 Pensioners who do not own ATM cards wait to withdraw part of their pensions to a bank branch, in Herakleion, on Crete Island, southern Greece,Greece, 01 July 2015. Pensioners who do not own an ATM card line up to enter in a bank branch to withdraw part of their pension, limit up 120 euros, as a result of capital controls imposed by the Greek government. The Greek government on 30 June presented a last-minute proposal for a two-year agreement with the European Stability Mechanism (ESM) to fully cover its financing needs, combined with debt restructuring. EPA/STEFANOS RAPANIS (File: 15498034.jpg )
Plans are being drafted in order to exclude new bank deposits from the capital controls which were imposed last summer, in an effort to boost domestic businesses – especially in the tourist sector – and to encourage the return of capital.
The government is preparing these plans at the recommendation of the European Commission. Such an exemption was also introduced in Cyprus when capital controls were imposed and is estimated to have greatly benefited the country’s recovery.
Although there has been a relaxation of some of the capital controls introduced in Greece in the summer of 2015, many still remain in place and affect the operation of businesses.
