Athens on Monday spent a large chunk of its bridge loan from the EU to repay its global creditors, including the global Monetary Fund and the European Central Bank, media reports said.
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For the average Greek, opening of banks doesn’t bring a host of good news, as the withdrawal limits remain the same, but the relaxation has been made on another account. The bank closures were the most visible sign of the crisis that took Greece to the brink of leaving the euro earlier this month, potentially undermining the foundations of the single European currency.
Greece reopened its banks and ordered billions of euros owed to global creditors to be repaid on Monday in the first signs of a return to normal after last week’s deal to agree a tough new package of bailout reforms.
However, a block on transfers to foreign banks and a ban on cashing cheques remain in place.
What this means is that the quantum of money allowed to be withdrawn per account per person per week remains the same, but the daily limit is gone.
For the past three weeks, Greeks have been waiting in line at cash machines to withdraw a maximum of €60 (£41) a day, a restriction imposed amid fear of a run on the banks. “That era is over”.
The higher taxes formed a key plank of last week’s bailout agreement between Greek Prime Minister Alexis Tsipras and European creditors.
Though the potential bailout has eased fears of a potential Greek exit from the euro, capital controls of some sort are expected to remain in place for months if not years. But Thursday’s rebellion cut his support to just 123 votes, meaning he is likely to need opposition votes again.
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On Monday, French President Francois Hollande put forward his ideas for a new parliament for the eurozone countries and a shared budget.
