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Greek debt crisis: Banks to reopen after three-week shutdown | Greek debt crisis: Banks to reopen after three-week shutdown |
(about 4 hours later) | |
Greek banks are set to reopen after three weeks of closures sparked by the deadlock over the country's debt. | Greek banks are set to reopen after three weeks of closures sparked by the deadlock over the country's debt. |
Athens reached agreement with its international creditors last week, in a cash-for-reforms deal that helped Greece avoid exiting the eurozone. | Athens reached agreement with its international creditors last week, in a cash-for-reforms deal that helped Greece avoid exiting the eurozone. |
But several restrictions remain in place, and Greeks also face price rises with an increase in Value Added Tax. | But several restrictions remain in place, and Greeks also face price rises with an increase in Value Added Tax. |
Meanwhile Germany has said it is prepared to consider further debt concessions to Greece. | Meanwhile Germany has said it is prepared to consider further debt concessions to Greece. |
Queues at ATMs have been a feature of life in Greece for weeks, with people waiting in line each day to withdraw a maximum of €60 (£41) a day, a restriction imposed amid fears of a run on banks. | Queues at ATMs have been a feature of life in Greece for weeks, with people waiting in line each day to withdraw a maximum of €60 (£41) a day, a restriction imposed amid fears of a run on banks. |
From Monday, the daily limit becomes a weekly one, capped at €420 (£291), meaning Greeks will not have to queue every day. | From Monday, the daily limit becomes a weekly one, capped at €420 (£291), meaning Greeks will not have to queue every day. |
Greece's recession | Greece's recession |
While banks throwing opening their doors marks the return of some normality to the Greek economy, long-term problems remain. | While banks throwing opening their doors marks the return of some normality to the Greek economy, long-term problems remain. |
Unemployment is stubbornly high, and as this chart shows, Greece's recession is comparable to one of history's most famous economic crashes. | Unemployment is stubbornly high, and as this chart shows, Greece's recession is comparable to one of history's most famous economic crashes. |
How bad are things for the Greeks? | How bad are things for the Greeks? |
The scale of hardship | The scale of hardship |
But a block on transfers to foreign banks and a ban on cashing cheques remain in place. | But a block on transfers to foreign banks and a ban on cashing cheques remain in place. |
Greeks will also pay more on a range of goods and services, including taxis and restaurants, with VAT rising from 13% to 23%. | Greeks will also pay more on a range of goods and services, including taxis and restaurants, with VAT rising from 13% to 23%. |
The VAT rise was among a package of reforms demanded by Greece's creditors to open talks on the proposed €86bn (£60bn) bailout. | The VAT rise was among a package of reforms demanded by Greece's creditors to open talks on the proposed €86bn (£60bn) bailout. |
Members of Prime Minister Alexis Tsipras's party rebelled against the austerity measures demanded by creditors when it was voted through parliament, | Members of Prime Minister Alexis Tsipras's party rebelled against the austerity measures demanded by creditors when it was voted through parliament, |
But it paved the way for Greece to receive a bridging loan, which enables the reopening of the banks and for Athens to repay debts to the European Central Bank and the International Monetary Fund due on Monday. | But it paved the way for Greece to receive a bridging loan, which enables the reopening of the banks and for Athens to repay debts to the European Central Bank and the International Monetary Fund due on Monday. |
German row | German row |
Both Greece and the IMF, have been arguing for a restructuring of its €320bn debt, saying its current position is "unsustainable". | Both Greece and the IMF, have been arguing for a restructuring of its €320bn debt, saying its current position is "unsustainable". |
The German Chancellor, Angela Merkel, ruled out a "a classic haircut" - a markdown of Greece's debts. | The German Chancellor, Angela Merkel, ruled out a "a classic haircut" - a markdown of Greece's debts. |
But she told ARD TV other forms of relief, such as extending maturities or slashing interest rates, could be considered once the details of the latest programme are worked out. | But she told ARD TV other forms of relief, such as extending maturities or slashing interest rates, could be considered once the details of the latest programme are worked out. |
She also played down reports of a row with her Finance Minster Wolfgang Schaeuble, who suggested in an interview with Der Spiegel magazine he would rather resign than defend something he did not believe in. | She also played down reports of a row with her Finance Minster Wolfgang Schaeuble, who suggested in an interview with Der Spiegel magazine he would rather resign than defend something he did not believe in. |
"The finance minister will, like me, conduct these negotiations and I can only say that no one came to me and asked to be relieved," said Ms Merkel when asked about the suggestion. | "The finance minister will, like me, conduct these negotiations and I can only say that no one came to me and asked to be relieved," said Ms Merkel when asked about the suggestion. |
Germany, which is the largest contributor to Greek rescue funds, has taken a tough line on Greece. | Germany, which is the largest contributor to Greek rescue funds, has taken a tough line on Greece. |
At one point in the fraught talks over the bailout Mr Schaeuble suggested Greece could temporarily exit the eurozone while it stabilises its economy. | |
Mr Tsipras, who has reshuffled his cabinet to replace rebellious ministers, has another set of reforms to push through parliament on Wednesday. | Mr Tsipras, who has reshuffled his cabinet to replace rebellious ministers, has another set of reforms to push through parliament on Wednesday. |
In a damning assessment, his former Finance Minister Yanis Varoufakis told the BBC the economic programme imposed on Greece was "going to fail". | In a damning assessment, his former Finance Minister Yanis Varoufakis told the BBC the economic programme imposed on Greece was "going to fail". |