Contractual Risk During The Greek Crisis: Do Capital Controls Qualify As Force Majeure?

Introduction

Sunday, 28 June 2015: A number of measures imposing a short‑term bank holiday and capital controls are put into effect by the Greek legislator. The duration of these extraordinary measures was initially set to eight days. Three months later, the bank holiday has been terminated; nevertheless, capital controls, while partially relaxed, have become part and parcel of daily transactions in the debt‑struck EU Member‑State. With Greek banks bleeding cash and deposits draining from an overwhelming flee of assets over the months preceding capital controls' imposition, the legislator's primary concern has been the prevention of bank deposits' depletion and the domestic banking system's collapse.