Greek banks reopen, but controls remain

Brussels - Greek banks started reopening yesterday after three weeks of closures sparked by the deadlock over the country’s debt. Athens reached agreement with its international creditors last week, in a cash-for-reforms deal that helped Greece avoid exiting the eurozone. But several restrictions remain in place, and Greeks also face price rises with an increase in Value Added Tax.Meanwhile, Germany has said it is prepared to consider further debt concessions to Greece. Queues at ATMs have been a feature of life in Greece for weeks, with people waiting in line each day to withdraw a maximum of €60 a day, a restriction imposed amid fears of a run on banks. From yesterday, the daily limit becomes a weekly one, capped at €420, meaning Greeks will not have to queue every day. But a block on transfers to foreign banks and a ban on cashing cheques remain in place. Greeks will also pay more on a range of goods and services, including taxis and restaurants, with VAT rising from 13 per cent to 23 per cent. The VAT rise was among a package of reforms demanded by Greece’s creditors to open talks on the proposed €86 billion bailout. Members of Prime Minister Alexis Tsipras’ party rebelled against the austerity measures demanded by creditors when it was voted through parliament, But it paved the way for Greece to receive a bridging loan, which enables the reopening of the banks and for Athens to repay debts to the European Central Bank and the International Monetary Fund due yesterday. Tsipras, who has reshuffled his cabinet to replace rebellious ministers, has another set of reforms to push through parliament on Wednesday. In a damning assessment, his former Finance Minister Yanis Varoufakis told the BBC the economic programme imposed on Greece was “going to fail”.

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Greek banks reopen, but controls remain