Banks to reopen on Monday, after sudden ECB cash boost
The 900-million-euro increase in the cash available to the Greek credit system and the lifting of the uncertainty with the passage through Parliament of the prior actions required for the third bailout loan pave the way for banks to reopen on Monday, according to sources. Meanwhile, the country’s lenders are close to merging some of their operations in neighboring states, in line with their restructuring plans.
The shutters will stay down at branches across Greece on Friday, but all are likely to reopen on Monday with an expanded range of transactions allowed, to be determined by a new legislative act that will likely be issued on Friday and apply from the new week.
The act will likely retain the daily withdrawal limit at 60 euros, but also introduce a weekly ceiling of 300 euros, meaning that customers who have not withdrawn any money for five days can take out 300 euros at once. The increased range of transactions will probably include the payment of checks into bank accounts and the opening of new accounts for purposes such as salary payments.
The European Central Bank unexpectedly raised the limit of the emergency liquidity assistance on Thursday by 900 million euros to 89.5 billion, offering a temporary lifeline to cash-strapped domestic banks. The Bank of Greece’s efficient imposition of the capital controls has played an important part in the protection of the sector since June 26.
The bourse may well open in the new week after three weeks of no trade. At first it will only be foreign institutionals which will be allowed to make transactions, along with the execution of orders with money forwarded from abroad.
Kathimerini understands that the Alpha Bank and Eurobank groups will make formal announcements in the next few days regarding an agreement they have reached to merge their Bulgarian subsidiaries. Eurobank will add Alpha’s 80 branches to its 180-strong network.
