Greece has decided that Greek banks would remain shut for six business days and restrictions would be imposed on cash withdrawals. As Greeks brace for the specifics on capital controls, here is a quick guide on what it means.
1. The moves (capital controls) are meant to staunch the flow of money out of Greek banks and spur the country’s creditors to offer concessions before a bailout program expires Tuesday. The accelerating crisis has thrown into question Greece’s financial future and continued membership in the 19-nation shared euro currency — and even the European Union.
2. Withdrawals from ATMs will be capped at 60 euros ($66) daily. The decree said ATMs would be working at the latest 12 hours from its publication, meaning cash machines should open by early afternoon.
3. Web banking transactions would be mostly free, allowing Greeks to pay bills online. However, they cannot move money to accounts abroad.
4. Credit and bank cards issued abroad can be used at ATMs with no restrictions, benefiting foreign visitors to Greece and its tourist industry.
5. For emergency needs, such as importing medicines or sending remittances abroad, the Greek Treasury was creating a Banking Transactions Approval Committee to examine requests on a case-by-case basis. (With AP inputs)