Reed Smith Client Alerts

Auteurs: Anthony Poulopoulos George Panagopoulos

On 28 June, the Greek Government imposed capital controls in the latest development in the country’s financial crisis. This has been imposed pending the referendum, scheduled to take place on 5 July, on whether people agree with the proposals of the European Commission, the European Central Bank and the IMF.

In summary, the legislative act on capital controls provides the following:

  • Banks will remain closed from 28 June until 6 July inclusive, with the period designated as a bank holiday.
  • The bank holiday period will apply to:
    • All banking institutions within Greece, including branches of foreign banking institutions.
    • Specific funds and institutions operating under Greek law.
    • E-money institutions legally operating in Greece.
  • The bank holiday period may be shortened or further extended by the Minister of Finance.
  • During the bank holiday period, the followings actions are permitted:
    • Cash withdrawals from ATMs up to a maximum of €60 per card, per day.
    • Transactions through e-banking, web-banking or tele-banking for payments to accounts within Greece, i.e. payments credited to an account kept in Greece. Transactions through e-banking, web-banking or tele-banking for payments to accounts within Greece, i.e. payments credited to an account kept in Greece.
    • Payments through pre-paid cards up to the balance on the card before the start of the bank holiday; new pre-paid cards may not be issued.
    • Transactions through e-banking, web-banking or tele-banking for payments to accounts within Greece, i.e. payments credited to an account kept in Greece.
    • Cash withdrawals from ATMs through cards that have been issued outside Greece may be made without limitation. Limits to these cash withdrawals may be imposed by the Minister of Finance.
  • During the bank holiday period, no other banking transactions may be performed.
  • The above mentioned limitations do not apply to:
    • Transactions with the Bank of Greece.
    • Trans-border payment instructions with credit to accounts kept in financial institutions operating in Greece.
    • Transaction clearances.
    • Specific transactions that are considered necessary by the Banking Transactions Approval Committee.
    • Transactions of the Hellenic Republic.
  • No default interest will apply to claims that become due during the bank holiday period.
  • Security instruments will not become due and payable during the bank holiday period.

 

Client Alert 2015-179