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Greece Banks to Remain Shuttered for Another Month

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Published on : Jul 16, 2015

At the end of June, the Greece government took the decision of closing banks and placed an upper limit of €60 as daily cash withdrawal limit for citizens. Such capital controls were only meant to restrict the financial movement of citizens for a week, however latest developments dropped a hint that Prime Minister Alexis Tsipras might be planning of keeping the banks shuttered for at least another month. 

During an interview with ERT, the public Greek television, Tsipras said that the reopening of the banks largely depends on the approving of deal, which may take place in a month. The important information was cited by The Telegraph. 

Prime Minister Alexis Tsipras also added that the Greek government is looking forward to the final decision of the European Central Bank. The Greek government is hoping that the European Central Bank would raise the emergency liquidity assistance level for the native banks, since it has made the announcement that it would maintain the facility frozen at $98 billion this week. 

Owing to the ongoing economic turmoil, Greece is falling deep into an abyss, hence the government is enforcing strict capital controls to stop the banks in the country from bleeding dry. However, such decisions also had adverse impacts on the local population. There are already long queues outside the ATMs in Greece of people who are in the need of money and pensioners are spotted crying on streets. 

The referendum has put Greece in a poorer financial position than it was during the beginning of the bailout process in 2010, when the country had set an upper limit of €240 billion. The referendum only froze the talks, ultimately leading Greece to default on a payment of €1.6 billion, which was to be made by June 30. This further ravaged the Greece’s credit rating and credibility.