Greek banks re-open - iefimerida.gr

Greek banks re-open

NEWSROOM IEFIMERIDA.GR

Banks in Greece have re-opened after a three-week shutdown as Prime Minister Alexis Tsipras looked to the start of new bailout talks next week.

The decree to re-open the banks came hours after new ministers were sworn in following a cabinet reshuffle in which Tsipras replaced dissident members of his ruling Syriza party following a revolt over the tough bailout terms.

Under the decree, Greeks will be able to withdraw a total of €420 a week, but in varying daily amounts, rather than €60 a day as at present. Over a seven-day period the overall limit will therefore remain unchanged. Restrictions on transfers abroad and other capital controls remain in place.

"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," Louca Katseli, the head of the Greek banking association, told during an interview with Mega television.

Capital controls are not expected to be fully lifted until after a general recapitalisation of Greek banks takes place, a process that depends on the successful negotiation of a new bailout deal between the government and its eurozone creditors.

The banks are able to reopen after the European Central Bank extended liquidity by 900m euros on Thursday, just enough to tide them over for a short time.

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