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Greece Banks Shuttered Another Week

After Greece rejected the bailout plan offered by EU creditors, Greek banks have decided to keep their doors shut until Friday, or even Monday next week.

The extreme measures come as the government ordered banks to enforce capital control when the European Central Bank (ECB) froze the level of emergency aid being made available to Greek banks.

A huge surge in ATM withdrawals reportedly dried up over 500 of the 7,000 ATMS in the country last week, which forced ECB to freeze the pipeline feeding Greek banks with cash.

To slow down the flow out of cash, Greek banks have set a daily withdrawal limit of €60 per person. However, it is being speculated that banks might very soon further lower the withdrawal limit, as banks fear a dry spell in coming weeks.

"With the amount of remaining cash in the system, it is not certain that we can go until the end of the weekend at the daily limit of €60," a banker expecting ECB to maintain the emergency liquidity assistance (ELA) funding cap at €89 billion told Reuters on Monday (July 6).

The decree to keep the banks shut is set to expire on Monday next week, and the government is expected to issue a new one to replace it, according to Reuters.

For now, the Greek government is continuing to allow electronic payments and ATM withdrawals using international bank cards, as long as there’s cash available in ATMs across the country.

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