Greece imposes capital controls, banks to remain shut

Greek banks will remain shut for an unspecified time and the country is imposing restrictions on bank withdrawals following a recommendation by the Bank of Greece, the country’s prime minister said Sunday.

Sunday’s move comes after two days of long lines forming at ATMs across the country, following Prime Minister Alexis Tsipras’ sudden decision to call a referendum on creditor proposals for Greek reforms in return for vital bailout funds.

Tsipras said the Eurogroup’s rejection of a bailout extension beyond June 30 sparked the European Central Bank’s decision to freeze its financial lifeline, and prompted “the Bank of Greece (to) ask for the activation of measures” comprising a “bank holiday and restriction of bank withdrawals”, adding that Athens had again requested a “prolongation of the program.”

Earlier Sunday, the European Central Bank decided not to increase the amount of emergency liquidity the lenders can access from the central bank — meaning they have no way to replenish fast diminishing deposits.

“It is now more than clear that this decision has no other aim than to blackmail the will of the Greek people and prevent the smooth democratic process of the referendum,” Tsipras said in a televised address to the nation.

Full article: Greece imposes capital controls, banks to remain shut (The Times of Israel)

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