Greece relaxes capital controls, will allow 500 euro withdrawals

The Greek government has relaxed slightly its restrictions on banking transactions, allowing small amounts to be sent abroad for the first time in about two months.

The finance ministry's amendments, published in the government gazette overnight Monday to Tuesday, include allowing Greeks to send up to 500 euros ($720 Canadian) abroad per person per month, and allowing up to 8,000 euros per quarter to be sent to students studying abroad to cover accommodation costs.

Greeks can now also open new bank accounts that will have no withdrawal rights, in order to repay loans, social security contributions or tax debts.

The government restricted banking transactions in late June to prevent a bank run after Prime Minister Alexis Tsipras announced a referendum on creditors' terms for a new bailout.