Monday, July 20, 2015

Greek banks opened for the first time today, three weeks after they were shut, in an attempt to boost  confidence in the country’s banking system.

Customers will have access to banking services including the ability to deposit checks and access safe deposit boxes; however, restrictions on cash withdrawals will remain. A withdrawal limit of €60 per account per day has been replaced with a weekly limit of €420. Banks will   also offer a limited range of services to enterprises, such as paying checks into existing accounts and issuing letters of guarantee. Corporate clients will be able to open accounts for specific purposes, such as salary payment or serving corporate start-ups. The ban on all inbound and outbound international transfers, remains in place. The Athens Stock Exchange will remain shut today, as further regulation might be needed for its reopening.

Last week the European Central Bank approved emergency financing into Greek banks, taking its emergency liquidity assistance to the country to €89.9billion. Following that, the European Council decided on Friday (17.07) to give a €7.16 billion bridge loan to Greece, to cover its short term financial needs, during negotiations on a three-year rescue programme. The loan will help cover a €3.5 billion payment to the European Central Bank, due today (20.7).