Greek capital controls and a deposit freeze chances higher – Moody’s warns

FXStreet (Mumbai) - The risk of Greece freezing bank accounts and imposing restrictions on the movement of cash has "materially increased" in the last few weeks, Moody's warned on Wednesday, reflecting a deadlock in talks with foreign creditors.

Moody’s said in a note, "The outlook for the Greek banking system is negative, primarily reflecting the acute deterioration in Greek banks’ funding and liquidity,"

"These pressures are unlikely to ease over the next 12-18 months and there is a high likelihood of an imposition of capital controls and a deposit freeze."