Right now the big question is whether Greece will accept the harsh terms set by the Eurogroup to avoid Grexit, but even if there is a third bailout it doesn’t mean that capital controls will be lifted anytime soon. Greek banks, while still solvent, have lost a quarter of their deposits since last December and now have such a small liquidity buffer that even with ECB support they may not be able to risk another round of deposit withdraws. “While the current collateral buffer (which we estimate at around €15bn) should allow Greek banks to keep operating if the ECB’s…
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