Macedonian banks to withdraw deposits from Greece
Macedonia has ordered its banks to withdraw their deposits from Greek banks in a bid to ringfence the country from its neighbour's escalating financial crisis.
The Macedonian central bank also imposed restrictions limiting the outflow of capital to Greece, after Athens announced capital controls following a collapse in bailout negotiations with its creditors.
"Macedonian banks are required to withdraw all loans and deposits from banks based in the Republic of Greece and their branches and subsidiaries in the Republic of Greece or abroad," a Macedonian central bank (NBRM) statement issued Sunday said
The NBRM said it is also imposing restrictions halting the flow of capital from the country to Greece on "newly concluded capital transactions".
The NBRM described both measures as preventive action applicable for a maximum of six months.
"These protective measures are temporary and were taken to cope with a possible major outflow of capital from Macedonia to its northern neighbour, that could provoke a perturbation in the balance of payments and stability of financial system," it said.
The central bank's decision came after Greek Prime Minister Alexis Tsipras announced that the closure of banks for a week and the introduction of capital controls.