Banks in Greece to Reopen Monday after ECB Boosts Emergency Lending

Southeast Europe | July 16, 2015, Thursday // 19:01|  views

A security worker carries cash into a bank branch as Greek pensioners line up to get part of their pensions, in Athens, Greece, 09 July 2015. EPA/BGNES

Banks in Greece will reopen on Monday, Greek news agency ANA-MPA reported on Thursday, citing banking sources.

The daily limit of EUR 60 for cash withdrawals will remain in force but account holders will now be able to skip going to an ATM one day and withdraw EUR 120 the following day.

The change aims to cut queues at bank branches and ATMs, ANA-MPA said.

News of the possible reopening of Greek banks after a three-week pause came after the European Central Bank (ECB) announced earlier on Thursday it had decided to increase the ceiling of its Emergency Liquidity Assistance for Greek banks by EUR 900 M. The emergency funding for Greek banks has been frozen at some EUR 89 B since late June.

The ECB decision followed the approval of the bailout-for-reforms deal in the Greek Parliament and an agreement in principle reached by Eurozone finance ministers to grant a EUR 7 B bridge loan to Greece.

The increase in ECB emergency lending to Greece is meant to help meet the banks’ needs over one week.

Greece's government announced a bank holiday, put a limit on daily cash withdrawal limit for citizens and introduced capital controls at the end of June to stave off economic collapse in the absence of a new bailout funding agreement with the country’s international creditors.

A ministerial decision on the bank holiday could come later on Thursday.

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Tags: greece, bailout, ECB, emergency liquidity assistance, bailout-for-reforms deal, bank holiday, limit, cash wihdrawal


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