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.