EU discuss 'limiting ATM withdrawals'

[sarcasmo]

Source: Irish times

Snip< European finance officials have discussed limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro zone capital controls as a worst-case scenario should Athens decide to leave the euro.


Snip< EU officials said the ideas are part of a range of contingency plans. They emphasised that the discussions were merely about being prepared for any eventuality rather than planning for something they expect to happen.

Read more: http://www.irishtimes.com/newspaper/breaking/2012/0612/breaking24.html

[Crow73]

1. or

The EU could nationalize the banks.
Just saying.

[bossy22]

5. or

we can realize that even nationalize the banks won't help in this situation. Depositors wan't physical cash not because of fear of one single bank going under but because an entire country might switch to a currency that has a hugely depreciated value (making their deposits if denominated in this currency worth much less). Since the only way to protect against this is with physical currency the only way to control a run like this is to control how much physicaly curreny someone is allowed to withdraw. It should also be noted that there isnt enough physical currency to support the entire withdrawl of all Euro deposits. It just isn't physically there.

[iamthebandfanman]

2. I have a limit

at my bank.
500 a day i think

[dipsydoodle]

7. UK is £600

allowable in two consecutive lumps of £300. Thats using a debit card in an ATM.

[dipsydoodle]

3. Exchange controls are to prevent flight

Last edited Tue Jun 12, 2012, 05:51 PM - Edit history (1)

Switzerland have already mooted locking out transfers into Swiss France too.

[sarcasmo]

4. Sounds like a lock down.

[dipsydoodle]

6. The UK had an exchange control act from 1939 -1979

Nothing new.

[Prometheus Bound]

9. I don't see how that is related to limiting ATM withdrawals.

[dipsydoodle]

11. OP mentions both subjects

ATMs and exchange controls.

[Prometheus Bound]

15. OK. I see.

[dipsydoodle]

17. Didn't mean to be blunt there

Last edited Thu Jun 14, 2012, 07:45 AM - Edit history (1)

Was using the tablet and don't know how to link using it.

[Prometheus Bound]

19. No problem. Short and sweet is always better.

[drm604]

8. Seems like announcing it like this could be a self fulfilling prophecy.

If people hear that withdrawals may be limited, they're going to start withdrawing.

[Prometheus Bound]

10. That's what I was thinking.

I know I would.

[sarcasmo]

13. That is what I took fro the article.

[sendero]

20. +1000 Exactly n/t

[Nye Bevan]

12. I would bet that most rich Greeks have already moved their assets out of the country,

where they will stay safely denominated in Euros, Swiss Francs, or US Dollars. It will mostly be the little people who are hurt if and when their savings are forcibly converted to devalued Drachma.

[ikri]

14. There was talk

A couple of years ago a lot of well-off Greeks started buying property in London so I would guess that most Greeks able to do so have already moved their cash outside of the country. As usual it will be the least well-off who will suffer the most no matter what happens to Greece.

[XemaSab]

16. Wow

That doesn't sound good.

[AngryAmish]

18. When someone yells fire in a theater, it is smart to be the first one out.

My advice: if you are in Spain, Italy, Greece, Ireland, Portugal get your money out now, put it into a US bank and revisit the situation in a few months. Keep a small account local and transfer funds whenever needed.