Greek Banks Reopen Doors after 3 Weeks of shutdown

Published By : 20 Jul 2015 | Published By : QYRESEARCH

Banks in Greece reopened their doors after a complete shutdown of three-weeks. The Greek government imposed this shutdown in order to prevent the banking system from collapsing. Though, the government has opened the banks, however, it has kept almost all the restrictions on financial transactions as it is.

After a tentative deal got finalized in order to provide US$94 billion to help Greece in overcoming this financial crisis, but the situation is still very much the same. A significant rise in the value-added tax on goods and services has hit Greek citizen this Monday. The Greek parliament has passed the orders to increase the VAT on goods and services in order to secure the new bailout contract with the Euro-zone.

The Greek government is also preparing itself for renewed defection in parliament as it gets ready to impose a second round of strict regulation on Wednesday. The vote that are to be casted in this week are expected to heighten the concerns regarding the stability of the incumbent government. The Greek Prime Minister, Mr. Alexis Tsipras is struggling to keep the left-wing Syriza party with him as he accepts the demands of austerity measures that his government denounced earlier.

Most measures of capital control, such as money transfers and cash withdrawals limitation are kept as it is in Greek banks. However, from Monday, the depositors are permitted to bundle up their daily withdrawal limit of €60 over several days and take out a collective €420 at the week’s end. The banks that are reopened are providing limited basic services like making domestic transaction to the Greek nationals, as of now.
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