Greek banks reopen in tentative step back to normality
Controls on withdrawals are eased but money flows are still restricted.
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Hawke’s Bay
Greece’s embattled banking system received some relief as loan repayments were made overnight and banks opened after a three-week shutdown.
The Greek government completed a €4.2 billion ($6.9 billion) payment to the European Central Bank and paid off some €2 billion in arrears to the International Monetary Fund.
This follows an agreement with eurozone ministers to provide Greece with a desperately needed short-term bridge loan to pay the debt.
However, tight restrictions on money flows remain, with limits on cash withdrawals and capital payments.
But depositors are allowed to bundle their €60 daily withdrawal limit over several days and take out a cumulative €420 at the end of the week.
The reopened banks are also limited to basic services such as making domestic payments in person, which customers have only been able to carry out online in recent weeks.
The branch openings help those who don’t have access to online banking. Clients can now access their safe-deposit boxes again.
Consumer prices and services rose as a value-added tax rose from 13% to 23%, one of the measures passed last week as a condition of a debt bailout agreement.
Talks can now begin on the terms of a tentative, three-year bailout deal struck for up to €86 billion in aid.
Prime Minister Alexis Tsipras’ government is bracing for renewed parliamentary defections from his left-wing Syriza party as it prepares to enact a second round of measures to restore financial stability.
The Athens Stock Exchange, whose operation was suspended June 29, remained closed Monday and it was unclear when it would resume trading.
Nevil Gibson
Tue, 21 Jul 2015
Tue, 21 Jul 2015
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Greek banks reopen in tentative step back to normality
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