Published On: Sat, Jul 18th, 2015

Greek Banks To Re-Open From Monday

Greek Banks

Greek banks were originally closed to prevent a collapse whilst the country was in talks with it’s creditors.

After three weeks of closure the Greek government has ordered banks to re-open on Monday.

Just hours after a cabinet reshuffle and Tsipras replacing non-conforming ministers of his Syriza party the government decree’d to re-open Greek banks. Most capital controls placed on withdrawals and transfers are to be left in place for the time being.

The move comes a week after Tsipras and Greece’s creditors agreed on bailout reforms and Greek lawmakers approved legislation required to release funding for the country. The European Central Bank has approved emergency funds for the country’s lenders including a bridge loan which was agreed on Friday which will keep the country afloat until the countries full three-year rescue plan which may be worth up to 86 billion euros is settled.

Due to strong concerns of Greece leaving the euro and defaulting on its debts, banks were shut down to avoid a banking crash under a flood of withdrawals.

Aristides Hatzis, an associate professor of law and economics at the University of Athens said: “This will improve the image of the economy for Greeks inside the country,” “It’s just the beginning and a more ambitious option wasn’t possible.”

Marking a divergence between the main leftist faction of the ruling Syriza party, Tsipras sacked the radical former Energy Minister Panagiotis Lafazanis with two other deputy ministers after a party rebellion where 39 Syriza lawmakers withdrew their support over the new bailout package.

Many believe the reshuffle has allowed Tsipras to replace cabinet rebels with his own allies or with his junior coalition partners, the right-wing Independent Greeks party. A close ally of Tsipras who moved from the labor ministry to head the vital energy portfolio, said the changes marked “an adjustment by the government to a new reality”.

The first move of the new cabinet was the reopening of banks on Monday allowing more flexible withdrawals allowing up to 420 euros a week in instead of the previous 60 euros a day limit which is currently in place.

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