Zippyjuan
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- Feb 5, 2008
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Capitol controls could be in place as soon as Monday- limiting how much money people can take out of the banks per day. Folks have already been lining up trying to get cash out before that happens. Though a deputy minister says no controls (perhaps trying to avoid panic but it also takes several days to put controls into effect- maybe open Monday but restrictions later in the week- a "bank holiday" is quicker to set up).
http://www.reuters.com/article/2015/06/26/eurozone-greece-banks-idUSA8N0Z301I20150626
Bank deposits have been falling since 2010- over 100 billion Euros worth taken out since then leaving about 130 billion Euros or just over half still remaining. Big money left long ago- it is mostly smaller depositors left. http://www.ft.com/intl/cms/s/0/f70c9250-1cde-11e5-ab0f-6bb9974f25d0.html#axzz3eIli52MK ATMs have been running out of money but bankers insist they are being refilled (though many remain shut down).
Greece has a referendum scheduled for July 5th on whether to accept the last offer for aid.
http://www.theglobeandmail.com/repo...-calls-for-bailout-extension/article25166862/
http://www.reuters.com/article/2015/06/26/eurozone-greece-banks-idUSA8N0Z301I20150626
No capital capital controls plan for Greek banks - deputy minister
ATHENS, JUNE 27
Greek banks will stay open on Monday and the country's leftist-led government has no plans to impose capital controls, a Greek deputy minister said on Saturday after Prime Minister Alexis Tsipras called a referendum on the creditors' proposal.
"Banks open on Monday and no capital controls," Deputy Administrative Reform Minister George Katrougkalos told reporters after an emergency cabinet meeting.
Bank deposits have been falling since 2010- over 100 billion Euros worth taken out since then leaving about 130 billion Euros or just over half still remaining. Big money left long ago- it is mostly smaller depositors left. http://www.ft.com/intl/cms/s/0/f70c9250-1cde-11e5-ab0f-6bb9974f25d0.html#axzz3eIli52MK ATMs have been running out of money but bankers insist they are being refilled (though many remain shut down).
Greece has a referendum scheduled for July 5th on whether to accept the last offer for aid.
http://www.theglobeandmail.com/repo...-calls-for-bailout-extension/article25166862/
The Greek government’s midnight decision to hold a referendum on the bailout terms on July 5 came as bank customers already feared that bank controls will be imposed as early as next week.
Several reports on Saturday said that hundreds of ATMs throughout Greece had run out of cash. A hundred or more people lined up at some bank branches before they opened in the morning. The Financial Times reported that three of the four ATMs in the small city of Sparta had run dry by early afternoon, local time.
The head of the Greek Bank Association, Louka Katseli, gave no hint that bank customers were on the verge of panic. He told the Athens News Agency that ATM machines were being replenished wherever “isolated problems” appeared. But the line-ups and the number of shut ATMs suggests that may Greeks are playing it safe by getting their cash out now.
Many economists think capital controls -- strict limits on daily withdrawals and international transfers -- will be imposed on the Greek banks any day. “I expect capital controls Monday at the latest,” Megan Greene, chief economist at Manulife and John Hancock Asset Management, said in a note from Brussels early Saturday.
The Greek banks are on European Central Bank life support. In the last week, the ECB has used emergency liquidity injections almost every day to replace fleeing deposits. The Bank of Greece announced on Thursday that deposits held by households and businesses fell to €129.9-billion in May from €133.7-billion a month earlier, implying a withdrawal rate of about €1-billlion a week.
The ECB, through the Bank of Greece, has provided a total of about €120-billion to the Greek banks to cover deposit losses. The uncertainty triggered by the surprise announcement of the referendum, whose outcome could make or break Greece’s membership in the euro zone, means the Greek banks would fail without continued ECB support. German finance minister Wolfgang Schaeuble recently suggested that capital controls on the banks should be offered in exchange for continued ECB support.
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