Moody’s and JP Morgan warned that the continuing outflow of deposits from Greek banks has significantly increased the risk of Greek authorities imposing capital controls to limit them. Indeed this would be a credit negative event for Greek banks. According to Moody’s such controls would be imposed in the form of restrictions on bank withdrawals, for example a limit could be imposed on the amounts that can be withdrawn or transferred abroad. While capital controls would help to limit the decline in liquidity, they would also increase uncertainty for businesses and households regarding their unhindered access to their deposits and liquidity, noted Moody’s. Furthermore, in a recent analysis JP Morgan warns that the possibility of imposing capital controls is increasing. The measure of capital controls is one mechanism that pushes Greece closer to an agreement with lenders, despite the exit from the euro, commented the group’s analysts. According to the two groups, a critical day in Greece’s future will come at the end of June, when the country will have to pay a 1.5 billion-euro installment to the IMF, which also marks the end of the creditor’s four month extension program.
 |
| READ THE ORIGINAL POST AT greece.greekreporter.com |