Eurobank urges Athens to lift capital controls by early 2016
ATHENS (Reuters) - Eurobank's chairman on Tuesday urged the Greek government to lift capital controls in the first quarter of 2016 at the latest, saying this would help restore market confidence and lead to a return of deposits to the banking system.
Greece imposed capital controls and ordered banks to shut temporarily in June after the European Central Bank (ECB) refused to increase emergency funding for lenders following a breakdown of bailout talks.
An 86-billion-euro ($98 billion) bailout deal has since been sealed and banks have reopened. Greece has been gradually easing the restrictions, which have helped contain a flight of deposits.
Nick Karamouzis, chairman of Greece's third-largest lender Eurobank, said that if capital controls were lifted in the coming months, up to 25 billion euros in deposits could return to the Greek banking system in 2016.
"It is crucial that the government seeks ... to fully lift capital controls as soon as possible, not later than the first quarter of 2016 and ideally before the end of the year," he said in a speech at a conference in Athens.
"Lifting capital controls will give a huge boost to markets and citizens' confidence."
Greece wants the review of its bailout by its international lenders - the ECB, International Monetary Fund and EU - to be swiftly concluded and to complete the recapitalisation of its banks by the end of the year.
(Reporting by Renee Maltezou; Editing by Pravin Char)
