ECB raps Greece for planned limits on cash payments

FRANKFURT, May 5 (BestGrowthStock) – Greece should change its draft
law on cash use, which aims to limit tax evasion, the European
Central Bank said on Wednesday.

The Greek draft law proposes setting upper limits on cash
payments at 3,000 euros ($4,000) for business-to-business
transactions and 1,500 euros for consumers.

While requiring payments to be made electronically or by
cheque complies with EU regulations as long as lawful means for
settling debts are available, the draft law is too strict, the
ECB said in a legal opinion.

“The proposed thresholds … will effectively be limitations
on cash payments,” the ECB said in the opinion dated April 30,
but published on the ECB’s Internet site on Wednesday.

The ECB also said the limits on cash use could conflict with
the Greek penal code, which prohibits refusing cash payments.

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(Reporting by Sakari Suoninen, editing by Mike Peacock)

ECB raps Greece for planned limits on cash payments