Greece wants to start charging people for cash withdrawals to prevent a run on banks

The cash-strapped Greek government has introduced a surcharge at cashpoints to prevent Greek citizens from withdrawing their cash.

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A senior finance ministry official said: “The surcharge is just one of a grab-bag of measures we are considering if things get tough.”

Withdrawals exceeded €15 billion in the run up to the February elections that catapulted Alexis Tsipras and the far-left Syriza government to power. Greek residents were reported to have stashed wads of money behind bathroom tiles and under floorboards.

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Greece met a €200 million interest payment on May 6, but a further €750 million bill to the IMF due May 12 could prove problematic unless funding is secured.

The delay is taking its toll on the Greek people. Pensioners have been left queuing for hours over a hold up to pension payments, while some payments for medical staff have not been received. Hospital suppliers, who provide bandages and vital machinery to hospitals, have warned that they may not able to continue deliveries.

“In the past four months we are experiencing an undeclared suspension of payments,” an association for hospital suppliers said in a statement seen by the BBC.

Full article: Greece wants to start charging people for cash withdrawals to prevent a run on banks (The Independent)