Emergency measure that feeds Greek crisis

Capital controls limiting cash withdrawals to 420 euros per week have had a greater impact on businesses than individuals, with imports plunging 12.8 percent and exports by 11.7 percentCast back a year: the standoff between the Greek government of Prime Minister Alexis Tsipras and the EU and IMF over the terms of a new rescue plan for the country was reaching breaking point. The talks on a third bailout had been going nowhere since Tsipras took power in January after sweeping elections on an anti-austerity platform and the EU and IMF warned the country’s place in the eurozone was at risk if it didn’t accept more spending cuts and tax hikes. Meanwhile Greeks had been taking out more and more of their savings from banks, with 20 percent gone when during the night of June 26 to 27 Tsipras shocked the world by announcing he would put the bailout conditions to a referendum vote.

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