Finance ministry issues road map for loosening of capital controls

A man receives several 50 euro bank notes from an ATM in this illustration picture taken in Zurich January 16, 2015. REUTERS/Arnd Wiegmann

The finance ministry issued on Monday a road map for the further relaxation of capital controls, aiming to fully remove them eventually as economic conditions improve.

According to a ministry statement, the road map was drawn up in cooperation with the Bank of Greece and is a “legally non-binding text” that reflects the strategy that will be implemented by the competent authorities.

The next steps-milestones which constitute the conditions for the loosening of capital controls will be implemented as soon as possible, as part of a comprehensive and careful strategy which is presented in the road map, the ministry says. It also said the implementation of the steps will be gradual, taking into account developments in the economic environment, adding that the time frame of these actions and the duration of each step is not specified.

The conditions for the loosening of the rules are:

-Improvement of macroeconomic conditions, which will in turn lead to an improvement of the economic climate

-Improvement of the climate in the markets and among bank depositors, which will be reflected, among others, in the increase of deposits by the private sector

-Continuous progress in the implementation of the adjustment program

-Gradually restoring the access of Greek banks and the State to financial markets

-Careful monitoring and analysis of the liquidity of banks during the loosening of the restrictions, as well as their ability to address any volatility of their liquidity during this process