Stunned Greeks React To Initial Capital Controls And The "Decree To Confiscate Reserves", And They Are Not Happy

Tyler Durden's picture

Earlier today, following weeks of speculation, Greece finally launched the first shot across the bow of capital controls, when it decreed that due to an "extremely urgent and unforeseen need" (ironically the need was quite foreseen since about 2010, but that is a different story), it would be "obliged" to transfer - as in confiscate - "idle cash reserves" located across the country's local governments (i.e., various cities and municipalities) to the Greek central bank.

Several hours later the decree which was posted in the government gazette has finally percolated among the population, and the response to what even ordinary Greeks realize is now the endgame, is less than exuberant.

Bloomberg reports, that "as Greece struggles to find cash to stay afloat, local authorities say they oppose a government decision to use their reserves for short-term financing."

“The government’s decision to seize our reserves not only raises legal and constitutional issues, but also a moral one,” said George Papanikolaou, mayor of Glyfada, the third-largest municipality in the metropolitan region of Attica after Athens and Piraeus. “We have a responsibility to serve our citizens,” Papanikolaou said by phone on Monday. Glyfada has about 16 million euros in cash reserves, he said.

George is unhappy because as recently as tomorrow, he will find there is precisely zero euros in his public bank account, as all the money has now been forcibly sequestered by the government in order to repay future Troika, pardon, IMF obligations.

Sadly for Greece, this is the only option left as the money has now fully run out: Greek Prime Minister Alexis Tsipras ordered local governments and central government entities to move their cash balances to the central bank for investment in short-term state debt.

From Bloomberg:

The decree to confiscate reserves held in commercial banks and transfer them to the Bank of Greece could raise as much as 2 billion euros ($2.15 billion), according to two people familiar with the decision. The money is needed to pay salaries and pensions at the end of the month, the people said.


“It is a politically and institutionally unacceptable decision,” Giorgos Patoulis, mayor of the city of Marousi and president of the Central Union of Municipalities and Communities of Greece, said in a statement on Monday.“No government to date has dared to touch the money of municipalities.”

It took the radical leftist one all of 2 months since coming to power.

And the punchline is that the use of confiscated proceeds is unclear: the government says it is to pay pensions and wages, but recall that the same government recently confiscated pensions to repay the IMF, so according to the chain of logic, the government first raided pensions, and now municipalities, just to repay the dreaded Troika.

The Athens city council and the union of municipalities and communities in Greece will convene tomorrow to debate the order, a press officer of the mayor’s office said.

And one everyone realizes what just happened, expect the riot cam and the Greek Pay-Per-Riot channel, which has been on hiatus since the summer of 2012, to be fully reactivated.

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fightthepower's picture

Plays into the hand of Golden Dawn.

ZerOhead's picture

Yup... and if they were smart they would also be banning all gasoline sales. Gonna be a hot time in the old town tonite...

Wolferl's picture

Throw those pathetic Greeks out of Europe already.

Deathrips's picture

Paper promises are slavery if there's no collateral.

Entire what happens when govts eat all the handouts like addicts.



El Vaquero's picture

Who pays the Greek cops?  The Greek government, or the municipal governments?  Inquiring minds want to know!

BaBaBouy's picture

""local authorities say they oppose a government decision to use their reserves for short-term financing."

WTF "short-term financing" ??? You Mean The Money Is GONZO For Good!

BaBaBouy's picture

This Muni Asset Seizure IDEA Comes RIGHT AFTER Klugman's Visit...

NoDebt's picture

Picture of the cop reminds me of my old G.I. Joe with the King Fu Grip.  Hai-yah!

Holding his riot shield upside down, too.  Or maybe it's because he's left handed and was using a right handed shield.

MillionDollarBogus_'s picture

Not happy..??

I see a cop dancing to a drummer's beat..

A Greek Stomp..

Zorba would be proud...

Handful of Dust's picture

The Greek Leaders [secret] Swiss Bank accounts have been getting a tad low ... thus the move to steal OPM.

Fish Gone Bad's picture

And yet another reason to not go to Greece...  Jumping riot police.  Riot police are bad enough, but do they HAVE to have the jumping variety as well???

Manthong's picture


What part of lice might we not understand?

Manthong's picture

Oh, you’al just do not understand the eastern traditions

Squid-puppets a-go-go's picture

my take on that photo of the cop was -

Drumming: ur doing it wrong

palmereldritch's picture

Project 'Taking It Up the Assets' has commenced

Manthong's picture

when things get serious, you have to jackboot.

Haus-Targaryen's picture

Fuck the Greeks. I bet all these munis are still flying the blue and yellow. Morons.

Tall Tom's picture

If you are invested in Euros then the Greek Default will make your European Union Banks insolvent.


It will not be contained. Then it will happen to you as a result. When you say fuck the Greeks you are actually hoping for your own ass reaming.


Not only can it happen to you but it will happen to you. And if ANYBODY ELSE believes that they are immune because they live here in the States and the currency is the Dollar?


It will also happen to us. It is just a matter of time and time is running short. It will be a spectacular implosion, happening almost overnight.


Who is the fucking moron? Take a good look in the mirror.


Fuck JPM and Goldman Sachs.

Haus-Targaryen's picture

Sorry - I realize the Greeks leaving will wipe out everyone, especially the EU.  Its why I want it to happen.  

I am properly hedged against the situation, and am really looking forward to picking up a ton of assets on the cheap in the coming depression.  

I realize it will be a spectatcular implosion.  I realize there will be chaos, rioting, and a general sense of the world coming to an end.  I also know that it is enivetable and MUST happen.  The longer it gets put off -- the less I have time to rebuild before my retirement.  

The world is cyclical.  

I'll keep calling the Greeks morons, because, essentially -- that is what they are.  Their media has directed their anger at the Germans instead of the EU and EMU where it properly belongs.  Most of the population is too stupid to realise it, as more than 2/3rds of them want to keep the EUR and keep their seat at the "cool kids table."  

Flagit's picture

Not to be nosy, but what assets are you talking about acquiring "on the cheap"?

Haus-Targaryen's picture

Looking forward to swapping AG and AU for real estate in arrears.  

USisCorrupt's picture

And then the Guberment will come and TAKE & TAX it away from you.


Do NOT put all eggs in one basket.


You will understand.

Haus-Targaryen's picture

Counterpoint - 

I do not live in the United States.  

USisCorrupt's picture



It makes no difference.

7.62x54r's picture

The state of California tried that. The local governments told them to screw off.

BaBaBouy's picture

""local authorities say they oppose a government decision to use their reserves for short-term financing."

WTF "short-term financing" ??? You Mean The Money Is GONZO For Good!

MonetaryApostate's picture

What if Greece is just a window to the future for every nation on this earth?

What if All Government are actually technically insolvent & broke like Greece & the elite say, too bad, pay up or else...?

What if I just stop shoving the truth down your throats and throwing buckets of realism on you all and go eat my happy meal now? :D

disabledvet's picture

Makes no sense to cut off the money then.


Thirty percent interest in a Christian land?


Absolutely criminal.

kchrisc's picture

Good video but they failed to show how it really works:

A bunch of pols, crats and funcs with guns show up and demand $11 from their victim. They then forward $6.00, after their cut, to the welfare meal recipient who then pays for the meal.

Why $6.00? Because the restaurant owner and his lobbying association have paid the pols and crats $.50 for priority. This enables the restaurant owner to raise his prices by $1.00 for EVERYONE, not just the welfare recipient.

Welfare starts with plunder.

Liberty is a demand. Tyranny is submission.


"Kill a welfare recipient, and they'll make more. Kill the plunder for welfare, and that's that."

Freddie's picture

The Greeks are hopeless z-slaves like Americans and Ukrainians.  The only good thing in Greece was that dog who barked at the cops during the riots and he died.

Scum bag Greek cops would try to kick him.

TheReplacement's picture

Do not forget they tax the transaction too.  They getcha coming and going. 

ThroxxOfVron's picture





...Here, boy...

Urban Redneck's picture

Federalism Bitchez!

They gave ownership of that money up when they signed up.

Confederalism is far superior government structuring, except in the eyes of thieving kleptocrats. 


bitterwolf's picture

"Come and take it"......the greeks have nothing to take.LOL"

Condition 1SQ's picture

Gee, who would have thought that a welfare state wouldn't do so hot?

boattrash's picture

Throw the EU and IMF out of Greece!  FIFY

kb0oxt's picture

A lot of people in the USA are very concerned about Jade Helm 15. What is happening in Grece may be what the US is getting ready for. We are BROKE

kb0oxt's picture

A lot of people in the USA are very concerned about Jade Helm 15. What is happening in Grece may be what the US is getting ready for. We are BROKE

acetinker's picture

Three words- Fuck you, Angela!

acetinker's picture

Three words- Fuck you, Angela!

acetinker's picture

Shit, Miffed!  Looks like I did!

Guess you can't back out of a comment w/o looking like a dumbass.

You gotta scroll back to the top and hit the home button.

In any case, I fervently hope that I have not made an enemy of you.

It's your choice.