Greece was forced to close its banks to prevent the system collapsing on June 29, after negotiations with bailout monitors culminated in a stalemate.
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Prime Minister Alexis Tsipras on Friday reshuffled his administration to fill the vacancies left by three cabinet members who were sacked after voting against the reforms in parliament last week. For example, a depositor who doesn’t withdraw cash on Monday can withdraw 120 euros ($130) on Tuesday, and so on, up to 420 euros ($455) a week.
The biggest challenge facing Greece’s new parliament is how to kick-start growth amidst crippling austerity cuts.
It would depend on reforms being enacted and “convincing the population that this is a path that allows Greece to assert itself rather than becoming a permanent alms-receiver”, he said in extracts from a television interview.
“What we’re witnessing is European solidarity in action”, said Valdis Dombrovskis, the EU Commission’s vice president for the euro.
And the global Monetary Fund has left a question mark over its participation in another rescue package, saying it will not join unless there is “dramatic” debt relief to make the country’s finances more sustainable.
The move had been widely expected after the European Central Bank agreed to re-open the emergency credit lines which the tottering Greek banking sector needs to survive.
“The banks are ready to open their branches but we have to wait for the final approval from the Central Bank of Greece“.
A revamped Greek government took over Saturday in an effort to enforce a third bailout accompanied by tough fiscal reforms opposed by a sizeable section of the ruling Syriza party. Most capital controls placed on withdrawals and transfers are to be left in place for the time being.
The three-week shutdown of Greek banks has cost the country’s struggling economy some 3.0 billion euros ($3.3 billion), the Kathimerini daily said Saturday citing commerce groups. That won’t last longer than a couple weeks, however, so the pressure is still on.
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Acceptance of the bailout terms that allowed for the banks to reopen marked a turnaround for Tsipras after months of hard talks and a referendum that rejected a less stringent deal proposed by the lenders.
