The Greeks prevent corralito opening accounts in neighboring Bulgaria – Aguasdigital.com

                 Photo: EFE

Since the beginning of the Greek crisis in 2009 many residents of northern Greece cross the nearby border to buy food and clothing at much lower prices than in their own country. With the “corralito” Greek, which allows bank withdrawals of only 60 euros, visits to cities near the border, as Sandanski and Petrich, are even more attractive. EFE

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             The Greeks prevent corralito opening accounts in neighboring Bulgaria

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08/01/2015 3:10 (-6 GTM)

                Petrich (Bulgaria), 1 Aug (EFE) .- More than 60,000 Greeks have bank accounts in neighboring Bulgaria and to avoid restrictions on cash withdrawals imposed by authorities in the Mediterranean country.
The Greeks only have you can cross the border to places like Petrich and Sandanski, 10 and 20 kilometers respectively from the border and go to a local branch.
With only present an identity document and fill out some forms, in half an hour open an account that allows virtually unlimited withdraw money.
“In two days we had open five deposits over 100,000 euros each and all of Greek citizens”, told Efe one employee of a bank officiate in Petrich .
Although the Greek government has relaxed restrictions “corralito”, remains in force a limit of 60 euros per day for cash withdrawals at ATMs or 420 to shop for those who have not taken money for a whole week.
“There are currently some 60,000 individual customer accounts opened in Greek banks in Bulgaria,” he told Efe economist Krasen Stanchev, of the Institute for Market Economics.
The irony is that leak savings that 25 percent of the Bulgarian banking market is held by four banks whose headquarters are Greek Alpha Bank, UBB, Piraeus Bank and Postbank
However, the Bulgarian subsidiaries operate completely independently of its plants in. Greece because they are “Bulgarian banks with Greek participation”, as defined by the Bulgarian National Bank.
They have investments in bonds, debentures and derivatives of the Greek Government and the limitations imposed by the Greek authorities on domestic banks not apply to branches abroad.
The Greeks are allowed to carry 2,000 euros in cash or its equivalent in foreign currency in their foreign travel, so someone crossing to Bulgaria every day can have after one week 14,000 euros in its Bulgarian account, all legally.
In addition, bank cards issued by foreign banks are not subject to limits, so a Greek with a Bulgarian card may exceed the maximum of Greece 60 euros a day, banking sources told Efe.
Generally, Bulgaria cards have a limit of 200 euros and 1,500 euros in cash payment in stores a day, but some banks offer the opportunity to make more money if pays a monthly fee.
In this movement of money also helps the relaxed border controls. In step of Kulata-Promachonas is always intense traffic in both directions, because many Bulgarians traveling to nearby Greek beaches for vacation or even for the day.
The border police agents are limited to launch a look at the documents of identity, without registering the car boot or luggage occupants to find cash that exceed the maximum marked.
In addition to the individuals who move their savings to Bulgaria, he has lately grown removals Greek companies to the country, especially Petrich and Sandanski.
Since 2009, some 10,000 small and medium enterprises have moved across the border, says the economist Georgi Angelov of the Open Society Institute.
Both cities have become very popular among the Greeks in recent years because housing prices and the cost of living in general are three times lower than in your country.
Vladislav Púnchev