European Central Bank (ECB) president Mario Draghi clarified, in a recent answer to a question by a Greek MEP, that capital controls are a matter of “national responsibility” and outside his Eurozone institution’s scope.
European Central Bank (ECB) president Mario Draghi clarified, in a recent answer to a question by a Greek MEP, that capital controls are a matter of “national responsibility” and outside his Eurozone institution’s scope.
Draghi’s answer comes as capital controls are still in effect in Greece, limiting most retail depositors to 420 euros in cash withdrawals a week. However, depositors can still use online e-banking services to pay bills or purchase items and services.
In reply to a query by MEP Eva Kaili, and forwarded to the ECB leadership via the chairman of the committee on Economic and Monetary Affairs in the European Parliament, Draghi notes:
“Capital controls, including any design features aimed at incentivising depositors to repatriate funds into the Greek banking system, a matter of national responsibility and hence fall outside the competence of the Eurosystem.
"Exempting repatriated funds from capital control restrictions may, depending on the level of depositor confidence, provide incentives for their repatriation.
It is up to the Greek authorities to assess whether and how such an exemption can be implemented.”