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#1 2018-11-30 09:44:04

bears123
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Registered: 2018-05-21
Posts: 231

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ATHENS, Dec. 21 (Xinhua) -- The lifting of capital controls in Greece may release 1 billion euro ( 1.04 billion U.S. dollars) investments within six months, "Kathimerini" (Daily) newspaper cited a study by the National Bank of Greece (NBG) on Wednesday.


Experts with the bank say in the study that the controls are harming the ailing economy, as the Greek government was still negotiating with the debt-ridden country's international lenders the terms of the third bailout.


According to the study, which sampled 1,200 medium size businesses, about one in every three Greek companies has put aside plans for investments during 2016 due to the capital controls.


And the rate of those who believe they will spend more than a year to return to normality has almost tripled from 6 percent at the end of 2015 to 17 percent today.


The study warns that the continuation of the capital controls will have an impact on the companies' structural operations, and suggests the lifting of the controls soon to avert structural problems in particular for the small size ones, which appear to have exhausted their reserves.


The capital controls were imposed in the summer of 2015, when Greek government came to the end of its bailout extension period without having come to an agreement on a further extension with its creditors.


The controls were introduced to prevent the collapse of the banking system from the hit of increasing outflow of capital amid concern over a rift with creditors that could lead Greece to disorderly default and Grexit.


As a result, Greek banks were forcibly closed for about 20 days and depositors were not allowed to withdraw cash more than 60 euros with one card a day.


Though the controls have gradually been eased since then, they are still affecting the operation of enterprises.

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