The control capital flows in Greece will be maintained for many months, until the banks have been recapitalised – provide the EU and the Greek authorities, quoted by Reuters news agency.
The longer you take debate on how – if at all – Europe must recapitalize the Greek banking sector, including worse condition will be rustic banks. – They are in a state of deep freeze, but due to the economy is getting weaker – said one of the interlocutors Reuters, stressing that constantly increasing number of loans that are not repaid.
The abolition of capital controls as quickly is therefore unlikely, even though they may be somewhat alleviated, as the first example was a partial lifting of restrictions on Friday for companies, on foreign money transfers.
– actually control capital flows will be possible only if the banks will have adequate capitalization – said the head of the Bundesbank, Jens Weidmann. This is what the Bundesbank has put pressure on the European Central Bank to freeze emergency funding for the banking sector to Greece, which led to the closure of banks.
The problem with the Greek rescue financial institutions lies in the fact that you have to decide whether the euro zone should be recapitalised, including shares in them and – at the beginning – forcing bondholders or even owners of large deposits that have suffered losses – Reuters explains.
Look how proposals are for Greece, the European Union:
The answer to this question will certainly complicate talks on the third bailout package for Greece, which started on Monday and should end before 20 August. Athens does not want to agree to load the owners of deposits bailing out the banks.
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