By virtue of Decision 2342/24.11.94 of the Governor of the Bank of Greece enterprises as well as natural persons concluding loans with commercial banks in foreign exchange are facilitated in the most lucrative investment of the loan proceeds. Consequently the limitation that the borrower ought to deposit the foreign exchange only in the bank which granted the loan is abolished and enterprises can seek more favourable terms for their investment (be it time deposit, repos, etc.).

In particular the above decision provides that the loan proceeds can be expatriated through the lender bank for the purposes mentioned in the loan agreement or be deposited therewith. The transfer of foreign exchange by the lender or intermediate bank and its deposit in other banks is allowed for the duration of the loan. The banks where such accounts are kept are obliged to forward to the lender or intermediate bank the slips of purchase of foreign exchange, where in it is indicated that the foreign currency concerns the loan in question, and the documents pertaining to the use of the loan. The submission of slips of purchase of foreign exchange and of the relevant documents will be effected either at the stage of the last transaction concerning the amounts deposited or prior to the expiration of the loan agreement. Commercial banks are free to use foreign exchange at their discretion.

Athanassios Vamvoukos, Bahas, Gramatidis & Associates, Athens, Greece

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