Greek banks have enough liquidity in cash machines to serve the public until Monday, Louka Katseli, head of the Greek bank association said on Thursday.
"We know that everything is secured until Monday,” she said and expressed confidence that the expansion of the services provided by banks as of Monday will resume as normal, but capital controls will remain.
Louka Katseli, who also chairs the National Bank of Greece, told Mega TV that “the solvency of the Greek banking system is guaranteed by the European Central Bank and the European Stability Mechanism. The sooner banks operate normally the lower the risk for savings haircut.”
Meanwhile, the finance ministry has extended "the bank holiday" until the Monday, while a ministry source said withdrawals would stay capped at 60 euros to avert a cash shortage. The closure was enforced on June 29, following the collapse of aid negotiations between Greece and international creditors.
The decision was announced as a Thursday deadline looms for Greek Prime Minister Alexis Tsipras to present a new set of "credible" proposals for economic reform in a late effort to stop his country going bankrupt. Earlier this week, euro zone ministers demanded the proposals in time for consideration at a meeting of all 28 EU member states on Sunday.