ECONOMY

New rules for the domestic investors in the Greek stock market

new-rules-for-the-domestic-investors-in-the-greek-stock-market

The Greek stock market will reopen on Monday after a five-week shutdown brought on by capital controls imposed at the height of the cash-for-reforms crisis with international lenders.

Local investors will face restrictions aimed at stemming capital flight. The rules have been approved by the European Central Bank to avoid a new deposit flight from Greek banks.

The ECB is concerned that if Greeks remove too much money from domestic banks, it may be required to raise more emergency fund for the banks.

Following is a summary:

Bank deposit accounts

Local investors, like all Greeks, will not be allowed to withdraw money from a deposit account in a Greek bank beyond 60 euros a day. This was part the capital controls. It means that there will be no money from such deposits for buying securities.

Fresh money

They can buy shares with fresh money from abroad or cash that they have at home or in a deposit box or from new bank accounts opened after the stock market rules decree was issued last Friday.

Domestic investors can also buy shares with money coming from security sales or dividends or cash remaining with their security firms.

Foreign investors

Foreign investors may trade in the Greek stock market without any new regulation. They are free to buy and sell, export and import money from trading.

[Reuters]