Greek government denies considering capital controls

European Central Bank extends emergency funding for Greek banks

Greece’s government is not considering capital controls to stem bank deposit outflows, the government spokesman said on Thursday

Greece’s government is not considering capital controls to stem bank deposit outflows, the government spokesman said on Thursday

 

Greece’s government is not considering capital controls to stem bank deposit outflows, the government spokesman said on Thursday, calling such a scenario “far from reality”.

Earlier, the Frankfurter Allgemeine Zeitung (FAZ), citing central bank sources, reported that the European Central Bank would feel more comfortable if Greece introduced capital controls.

But the spokesman noted the ECB had extended ELA emergency funding for Greek banks on Wednesday as Greece negotiates with its euro zone partners.

“Evidently, one day after the extension of the ELA and at a moment when we are closer to a mutually beneficial solution, one wonders about scenarios (of capital controls) that have no bearing on reality,” government spokesman Gabriel Sakellaridis told Reuters.

An ECB spokeswoman said the bank’s Governing Council of policymakers had not addressed the issue.

Reuters