1. Greece crisis: Banks to remain shut, says finance ministry source

Greece crisis: Banks to remain shut, says finance ministry source

Greek banks will remain shut beyond today, a finance ministry source said as authorities struggled to contain the economic damage from a two-week closure brought about by a cash shortage.

By: | Published: July 13, 2015 11:25 PM

Greek banks will remain shut beyond today, a finance ministry source said as authorities struggled to contain the economic damage from a two-week closure brought about by a cash shortage.

A new expiration date for the bank holiday would be announced later today, the source told AFP.

The banks have been closed since June 29, with withdrawals by Greeks limited to 60 euros (USD 66) after the government called a referendum on EU-IMF creditors’ terms for an international bailout.

An even harsher set of terms was accepted by the Greek government today.

The ECB is currently keeping Greek banks — and by extension the Greek economy — afloat via its Emergency Liquidity Assistance (ELA) facility, but it has frozen total aid at 89 billion euros (USD 99 billion).

The ECB today decided to keep the ELA steady hours after eurozone leaders hammered out a three-year bailout package for Greece worth up to 86 billion euros (USD 96 billion), in return for tax hikes, pension reform and tough privatisation pledges.

The bank restrictions have badly disrupted the operation of the already weakened Greek economy, mostly limiting consumer purchases to food and fuel for the past two weeks.

But authorities have been careful not to disrupt the busy tourism season by sparing foreign card holders from withdrawal restrictions.

  1. No Comments.

Go to Top