Greece on Friday partially relaxed the capital controls introduced nearly a month ago to protect the debt-crippled country from financial collapse, giving some much-needed relief to firms that do business abroad. Bank of Greece chief Yannis Stournaras said the country's commercial banks, which have seen their services severely limited since the capital controls were brought in on June 29, could now authorise bill payments to other countries of up to 100,000 euros ($110,000), up from 50,000 euros.
"In the next ten days, we will resolve the problems created" by the capital controls, Stournaras said after meeting with employers' representatives and finance ministry officials, according to a statement. As part of the measures introduced to stop a panicked flight of cash from the Greek financial system, companies have been forced to wait for a government commission to approve foreign transfers, a process that has proved so slow that some suppliers have begun demanding payment in advance. "The lifting of the ceiling to 100,000 euros covers 70 percent of demands from professionals," Vassilis Korkidis, president of the Greek Merchants' Federation (ESEE), told AFP. "It came into force today. It's a positive move; we'll be able to see the effects of it next week."
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