Credit sector holiday until Wednesday
The European Central Bank’s decision on Monday not to raise the limit of the cash available to Greek lenders forced the government to extend the bank holiday for two more days, up to Wednesday evening.
Frankfurt will determine its policy on an extension of emergency liquidity assistance (ELA) based on whether the Greek Parliament passes the measures the government agreed to in the context of Monday’s eurozone summit.
If, as agreed, the measures clear Parliament by Wednesday, the ECB may allow for an increase in the liquidity available to Greek banks, although this would not signify an end to capital controls.
The Finance Ministry is on Tuesday expected to assess the range of banking activities to be allowed during a bank holiday, with the aim of making it easier for business transactions to be carried out.
This will likely concern transactions that will not lead to an outflow of deposits and which could open the way for a partial revival of financial activity – such as depositing checks from clients into business accounts – without the use of banknotes or the withdrawal of the amount involved.
