Canadians hoping to send money to loved ones living or travelling in Greece got a little bit of good news on Tuesday.
Western Union resumed wire transfers to banks in Greece on Tuesday, more than a week after it suspended service for funds going into and coming out of the country.
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“This is a tremendous breakthrough, paving the way for family and loved ones across the globe to send money to their home community, particularly during more difficult financial circumstances,” Giovanni Angelini, Western Union’s Senior Vice President and General Manager for Europe, said in a statement.
But because of government restrictions on money transfers, while money can go in, the service is still not allowing funds to be transferred out of the financially troubled country.
And while funds can go in to banks, a spokesperson told Global News Tuesday that clients in Western Union’s walk-in retail locations in Greece are still not being offered inbound or outbound money transfers because of the government restrictions.
So if you don’t have a bank account for the money to be transferred into, you may be out of luck.
READ MORE: Canadian travellers worried about going to Greece amid financial unrest
The problem that remains with direct-to-bank account transfers is that until the withdrawal limit is lifted, the receiver will still only be able to get a maximum of 60 euros (approximately $83.68) out of the bank each day.
The government didn’t impose the same withdrawal restrictions on foreign bank accounts. But with the banks shuttered and long lineups at ATMs, there’s limited cash to take out.
Transfers directly from your bank to an account in Greece may still be problematic until the banks reopen.
“Typically, if you’re wiring money to Greece… it would have to be accepted by a bank on the other end,” said Maura Drew Lytle, spokesperson for the Canadian Bankers Association. “Some banks have stopped allowing customers to wire money at this point,” she said. “The situation is very fluid and changing, so it’s really best to check with your bank.”
READ MORE: Can new finance minister Euclid Tsakalotos resolve Greece’s economic crisis?
The Greek government shut down banks and stopped money transfers on June 29, after the European Central Bank capped its emergency liquidity assistance to Greek banks and as Greece was about to miss a 1.6-billion euro debt payment to the International Monetary Fund. A month earlier, the government vowed not to put capital controls in place.
The restrictions were put in place to prevent the economy from complete collapse as anxious Greeks rushed to retrieve their savings.
Greek bankers estimated between 500 to 600 million euros were taken out of Greek banks on Saturday, June 27 before the banks were closed.
Banks were intended to reopen after Sunday’s referendum when Greeks voted to give a resounding “No” to the terms of an economic bailout — a bailout offer that had already expired. The government extended the capital controls until at least the end of the day Wednesday, The Guardian reported.
Greek Prime Minister Alexis Tsipras and newly instated Finance Minister Euclid Tsakalotos arrived in Brussels, Belgium to resume talks with creditors and negotiate a new rescue package.
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