Tsakalotos looks to the Far East for investors

Finance Minister Euclid Tsakalotos will be in Singapore on Tuesday and in Hong Kong on Wednesday to hold a series of meetings with representatives of investment firms. On Thursday, the Greek minister will visit Bali to attend IMF and World Bank Annual meeting (12-13 October). 

The problem is that some have reservations about the feasibility and outcome of this trip to Singapore and Hong Kong.

According to information, American investment banks and funds, which have been contacted in the past, did not hide from the Greek minister that they do not see such a trip to the Far East in a good light. It could be assumed that these objections are based on the ongoing US-China trade war. But it is not just that. This is because European "serious" investors believe it is too early for Greece to "spread out" to the East, when there is no impact on markets closer to home, for example. Germany or Spain.

As people close the bond market, despite the huge volume of funds they manage, the Asians are not "easy" or risky "players". On the contrary. They do not invest in securities, under the minimum investment grade, BBB, where Greece is not expected to reach in the next two years. What is the risk? The Greek side will find closed doors and this will count negatively on the search for a corridor towards the markets in the first quarter of 2019. 

Greece will end restrictions on cash withdrawals from domestic bank accounts and increase the amount of money that can be transferred abroad as part of measures to ease capital controls imposed three years ago, the government said on Thursday.
The decision will go into effect on Oct. 1, the finance ministry said.
Athens first imposed capital controls in the summer of 2015, to stem a flight of cash from its banks at the height of a debt crisis which led to its third financial bailout since 2010.
“The decision is one more step on the roadmap towards a gradual lifting of restrictions ... on capital transfers,” the ministry said. “Authorities aim at the full lifting of restrictions as soon as possible.”

The decision lifts a previous 5,000 euro monthly limit on cash withdrawals from domestic bank accounts and ends restrictions.
It also raises the amount of cash that individuals can take with them outside the country to 10,000 euros per trip from 3,000 euros previously.
It also increased the daily limit of money transfers abroad by businesses to 100,000 euros from 40,000 previously. Such transactions can be processed at bank branches without the need for further permits.
The decision also allows the transfer abroad of profits and dividends on foreign capital invested in Greece - up to 100 percent of the invested amount.