The strict restrictions on depositors of Greece that were imposed when the debt crisis in the country was at its height four years ago are set to be lifted off.

This change in monetary policy being planned to be implemented would finally remove all forms of restrictions on individuals and companies barring them from remitting money out of the country. This measure was taken during the so called Grexit crisis in 2015 to prevent banks from becoming bankrupt and run out of money.

The Greek prime minister, Kyriakos Mitsotakis, made the declaration on Monday saying the financial restrictions “a thing of the past”. This, according to analysts, is a signal of a new era for the country which had been at the centre of a crisis that threatened to upend the economy of the entire eurozone for a period of almost a decade.

The announcement was made in t Greek parliament by Mitsotakis just about seven weeks after he had assumed office along with his centre-right government. While making the announcement, he said that the lifting of the measures on banking was the end of “a four-year cycle of insecurity”.

“After 50 whole months they are being abolished,” he told MPs.

Individuals and companies would be able to send money out of the country starting September 1 now that the controls have been removed completely.

The new government under Mitsotakis is seen as one that follows a pro-business attitude and the new government views that it is critical that for the economy of the country to revive and rebound, it is important to focus on domestic and foreign investments. Mitsotakis said that the confidence of investors, companies and individuals would be significantly enhanced because of the restoration of the free movement of capital.

In the middle of 2015, when there were profound fears over a disorderly exit in Greece, there was panic and fear among depositors which prompted them to make huge cash withdrawals from banks. At the same time, the terms of emergency funding from the EU and IMF were being worked out by the leftist government led by Alexis Tsipras.

According to the former banker, for the return to normality of the Greek economy, it was very important and critical that the government lifted the restrictions on banking in and form the country. Even though the strict restrictions that were imposed four years ago had been gradually relaxed, those restrictions and curbs that still remained were viewed to be an impediment for creating a complete revival scenario for the Greek economy which had to be bailed out with financial packages on three occasions since 2010.

(Adapted from TheGuardian.com)

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