Greece Introduces Capital Controls, Banks to Close from Monday

Greek Prime Minister Alexis Tsipras announcing a bailout referendum on the Greek debt deal to take place on 05 July 2015, during a televised speech on the state TV ERT in Athens, Greece, June 27, 2015. EPA/BGNES

Greek Prime Minister Alexis Tsipras announced on Sunday a bank holiday and the introduction of capital controls in the country.

Greek banks will remain closed from Monday in order to avert a financial collapse after the ECB froze emergency loans to the country’s lenders.

This became clear after a meeting of the government’s financial-stability panel on Sunday, daily Kathimerini reports.

Banks are expected to remain closed until at least July 5, when the bailout referendum proposed by PM Tsipras and approved by the parliament is scheduled to take place.

Tsipras has accused the ECB and European partners for trying to obstruct the democratic referendum.

Greeks responded to the proposed referendum by withdrawing money out of banks.

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