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Greek banks reopen - but strict capital controls remain

Banks have reopened across Greece this morning, after being shut for three weeks.

However, the financial situation is not back to normal for ordinary Greeks. Citizens are able to withdraw €420 a week at once instead of just €60 a day, but this limit will effectively remain the same, while capital controls will also stay in place

Queues build this morning at Greek banks Credit: APTV


Greek banks to reopen after three-week shutdown

The latest chapter in Greece's financial crisis begins today as the country's banks prepare to reopen.

Greeks will still be subject to bank withdrawal limits Credit: Reuters

However, capital controls will remain in place following the three-week shutdown although German Chancellor Angela Merkel has called for swift aid talks so Athens could also lift withdrawal limits.

The cautious reopening of the banks, and an increase in value added tax on restaurant food and public transport from Monday, are aimed at restoring trust inside and outside Greece after an aid-for-reforms deal last week averted bankruptcy.

"Capital controls and restrictions on withdrawals will remain in place but we are entering a new stage which we all hope will be one of normality," the head of Greece's banking association Louka Katseli told Skai television.

Greeks will be able to withdraw 420 euros a week at once instead of just 60 euros a day, but the limit will effectively remain the same and capital controls will also stay in place.

"That's not a normal life so we have to negotiate quickly," Merkel said in extracts from an interview with German public broadcaster ARD.

Eurozone ministers agree Greek bridging loan

Eurozone finance ministers have agreed to provide a 7 billion euro bridging loan to help Athens meet upcoming debt payments to the European Central Bank (ECB) and International Monetary Fund (IMF).

This loan still needs to be approved by ministers of all 28 EU member states.

The European Central Bank has also said that it will increase emergency support to Greek banks - a first step toward helping the country's banks reopen.

Greek banks will reopen on Monday

Greek banks will reopen on Monday, a senior banker has told Reuters.

It comes after the European Central Bank decided to increase emergency funding.

Banks have been closed since June 29 after Athens imposed capital controls. "They will open on Monday," the banker said.

The ECB on Thursday increased the cap on emergency funding Greek lenders can draw from the domestic central bank by 900 million euros.

Greek vote: 229 in favour and 64 against

A controversial bailout package was passed with 229 votes, 64 votes against it and six abstentions.

Ex-finance minister Yanis Varoufakis and the current Energy Minister Panagiotis Lafazanis, Deputy Labour Minister Dimitris Stratoulis and speaker of parliament Zoe Constantopoulou all voted against the deal.

Greek Prime Minister Alexis Tsipras (R) and Finance Minister Euclid Tsakalotos. Credit: Reuters


Tsipras: 'We don't believe in it, but we're forced to adopt it'

Greece' Prime Minister has made a last ditch appeal to parliament asking for support of the tough package of bailout measures imposed by European partners.

Alexis Tsipras told lawmakers there was no alternative, even though he disagreed with the measures.

"We don't believe in it, but we are forced to adopt it," he said.

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