01:18Greece: Banks reopen after three-week shutdown, capital controls remain
Banks in Athens and across Greece reopened on Monday morning after being closed for three weeks, but capital controls remain in place as does a withdrawal limit. However, the daily limit of €60 ($65) per day is set to be replaced with a weekly one of €420 ($456) per week. The stock market will remain closed.
A new deal approved by the Greek parliament last week allowed the European Central Bank to inject €900 million to the Greek banks. A number of reforms are to be put into action Monday, with VAT rising in a number of goods and services sectors from 13% to 23%.
The 28 members of the European Union have agreed to make a €7.16 billion ($7.78 billion) bridge loan to Greece, thus preventing it from an "immediate default," the European Commission Vice-President Valdis Dombrovskis announced at a press conference in Brussels, Friday.
Greece will receive the funds coming from the European Financial Stabilisation Mechanism (EFSM) by Monday, so it can clear its arrears with the International Monetary Fund (IMF), as well as make repayments to the European Central Bank (ECB) and the Bank of Greece. According to the European Council press release, the loan will have a maximum maturity of three months and will be disbursed in up to two instalments.
01:18Banks in Athens and across Greece reopened on Monday morning after being closed for three weeks, but capital controls remain in place as does a withdrawal limit. However, the daily limit of €60 ($65) per day is set to be replaced with a weekly one of €420 ($456) per week. The stock market will remain closed.
A new deal approved by the Greek parliament last week allowed the European Central Bank to inject €900 million to the Greek banks. A number of reforms are to be put into action Monday, with VAT rising in a number of goods and services sectors from 13% to 23%.
The 28 members of the European Union have agreed to make a €7.16 billion ($7.78 billion) bridge loan to Greece, thus preventing it from an "immediate default," the European Commission Vice-President Valdis Dombrovskis announced at a press conference in Brussels, Friday.
Greece will receive the funds coming from the European Financial Stabilisation Mechanism (EFSM) by Monday, so it can clear its arrears with the International Monetary Fund (IMF), as well as make repayments to the European Central Bank (ECB) and the Bank of Greece. According to the European Council press release, the loan will have a maximum maturity of three months and will be disbursed in up to two instalments.