Greek banks finally re-open their doors to the public but with restrictions in place

20th July 2015


Following three weeks’ of closure Greece’s banks have once again opened their doors to the public however a number of trading restrictions have been put in place.

The nation’s banks were shut on the back of its crippling debt and subsequent failure to seal a deal with its creditors.

However Greece has now come to an arrangement – a cash-for-reforms deal, which has been put in place to stop the economically embattled country from leaving the eurozone and defaulting on its debt. As a result of the reforms, Greeks will have to deal with higher costs and a VAT from 13% to 23%.

Over recent weeks, Greeks have been queuing en masse at ATMs but have been limited to withdrawing a maximum of €60 (£41) a day, in a bid to stop a Northern Rock style run of assets.

BBC News reports that while the banks are open for business, several limitations have been brought in such as a ban on international money transfers and on cashing cheques.

It added that from Monday, the daily cash withdrawal cap will become a weekly one, limited to €420 (£291), where Greeks will not have to queue every day.

Greece and crisis lender the International Monetary Fund (IMF) have been negotiating over the restructuring of its massive €320bn debt, which the Greek Government, led by Prime Minister Alexis Tsipras  has urged is unsustainable.

While Germany has said no to a markdown of its debts, it Chancellor Angela Merkel has said she is prepared to look at further debt concessions.

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