ATHENS:Banks in Greece reopened on Monday after remaining closed for three weeks and the country made repayments to its key lenders the European Central Bank and IMF after receiving temporary funding.
Greece repaid the European Central Bank euro 4.2 billion, comprising euro 3.5 billion bond and euro 700 million interest payment. It also repaid about euro 2.05 billion to the International Monetary Fund, which included the euro 1.6 billion repayment due in June, which was missed. IMF spokesman Gerry Rice said the Fund “stands ready to continue assisting Greece in its efforts to return to financial stability and growth.”
Athens received a euro 7 billion temporary or bridge finance facility late last week from the European Union so it could quickly repay its most urgent debts, even before its euro 86 billion bailout was in place. Queues formed early outside bank branches across Greece on Monday as banks reopened after three weeks. The banking sector is still subject to capital controls, according to which people can’t withdraw more than euro 420 per week from their accounts, or transfer money overseas.
Till last week, queues outside ATMs were a regular feature in Greece, as people waited in line each day to withdraw a maximum of euro 60 a day. The Greece stock market is also to remain closed until further notice. Higher taxes on everything from coffee to diapers, as part of the bailout austerity measures, also kicked in. The value added tax (VAT) on food and public transport has jumped to 23 percent from 13 percent.
