ECONOMY

Transactions expected to get easier

transactions-expected-to-get-easier

The new legislative act to be issued on Monday will provide for an expansion of banking operations that will be possible as of Tuesday.

Sources say that the increase in activities will cover transactions by clients or enterprises concerning money forwarding within the country and which will require a physical presence at the branch. This way the government is hoping that economic activity will gradually be restored in the country, allowing bank branches to conduct more activities after only opening during the last two weeks to serve pensioners.

Capital controls will stay in place as the main concern remains avoiding a bank run, which is likely considering the fact that trust in the institutions has been seriously damaged. Therefore, the limit on daily withdrawals will be retained, but could rise marginally if the European Central Bank decides to increase the emergency liquidity assistance.

The big question is when the limitations on transactions by enterprises will be lifted, especially concerning bank checks, while corporate bank accounts have in many cases been emptied in recent days due to fears of a deposit haircut, or bail-in, as enterprises rushed to pay salaries and debts to the state, clients and suppliers.