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| Greek debt crisis: 2bn euro arrears repaid to IMF | |
| (35 minutes later) | |
| The International Monetary Fund (IMF) has confirmed that Greece has cleared overdue debt repayments of €2.05bn (£1.4bn) and is no longer in arrears. | The International Monetary Fund (IMF) has confirmed that Greece has cleared overdue debt repayments of €2.05bn (£1.4bn) and is no longer in arrears. |
| The repayments, and another for €4.2bn to the European Central Bank (ECB) due on Monday, came after the EU made Greece a short-term loan of €7bn. | The repayments, and another for €4.2bn to the European Central Bank (ECB) due on Monday, came after the EU made Greece a short-term loan of €7bn. |
| Cash-strapped Greece missed one repayment to the IMF in June and another earlier this month. | Cash-strapped Greece missed one repayment to the IMF in June and another earlier this month. |
| Earlier on Monday, Greek banks reopened after being closed for three weeks. | Earlier on Monday, Greek banks reopened after being closed for three weeks. |
| However, many restrictions remain and Greeks are facing price rises with an increase in Value Added Tax (VAT). | However, many restrictions remain and Greeks are facing price rises with an increase in Value Added Tax (VAT). |
| Analysis by Robert Peston, BBC economics editor | Analysis by Robert Peston, BBC economics editor |
| Just because the doors of Greek banks are open today, don't be fooled into thinking they and the Greek economy are anywhere near back to recovery. | Just because the doors of Greek banks are open today, don't be fooled into thinking they and the Greek economy are anywhere near back to recovery. |
| There are still major restrictions on the ability of their customers to obtain their cash or move it around. | There are still major restrictions on the ability of their customers to obtain their cash or move it around. |
| The symbolic importance of the European Central Bank turning on the emergency lending tap again was important, but it has only been turned on a fraction. | The symbolic importance of the European Central Bank turning on the emergency lending tap again was important, but it has only been turned on a fraction. |
| It has given enough additional Emergency Liquidity Assistance - €900m - to keep the banks alive in a technical sense. | It has given enough additional Emergency Liquidity Assistance - €900m - to keep the banks alive in a technical sense. |
| There is no possibility of them thriving for months and even possibly years. | There is no possibility of them thriving for months and even possibly years. |
| Read more from Robert | Read more from Robert |
| IMF spokesman Gerry Rice confirmed in a statement that Greece had repaid the totality of its arrears. | IMF spokesman Gerry Rice confirmed in a statement that Greece had repaid the totality of its arrears. |
| "As we have said, the fund stands ready to continue assisting Greece in its efforts to return to financial stability and growth," he said. | "As we have said, the fund stands ready to continue assisting Greece in its efforts to return to financial stability and growth," he said. |
| Greece missed its first repayment to the IMF on 30 June and another on 13 July during deadlock over negotiations for a third bailout. | Greece missed its first repayment to the IMF on 30 June and another on 13 July during deadlock over negotiations for a third bailout. |
| The crisis brought Greece to the brink of economic collapse and an exit from the euro. | The crisis brought Greece to the brink of economic collapse and an exit from the euro. |
| The government has since reached a cash-for-reforms deal with its creditors and negotiations are due to begin on the proposed €86bn rescue package. | The government has since reached a cash-for-reforms deal with its creditors and negotiations are due to begin on the proposed €86bn rescue package. |
| For the past three weeks, Greeks have been waiting in line at cash machines to withdraw a maximum of €60 (£41) a day, a restriction imposed amid fear of a run on the banks. | For the past three weeks, Greeks have been waiting in line at cash machines to withdraw a maximum of €60 (£41) a day, a restriction imposed amid fear of a run on the 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. |
| However, a block on transfers to foreign banks and a ban on cashing cheques remain in place. | However, a block on transfers to foreign banks and a ban on cashing cheques remain in place. |
| VAT is rising from 13% to 23% meaning Greeks will pay more on a range of goods and services, including taxis and restaurants. | VAT is rising from 13% to 23% meaning Greeks will pay more on a range of goods and services, including taxis and restaurants. |
| The rise was among a package of reforms demanded by Greece's creditors. | The rise was among a package of reforms demanded by Greece's creditors. |
| Dimitris Chronis, an Athens kebab shop owner, said the new taxes were bad news for his business. | Dimitris Chronis, an Athens kebab shop owner, said the new taxes were bad news for his business. |
| "I can't put up my prices because I'll have no customers at all," he said. | "I can't put up my prices because I'll have no customers at all," he said. |
| "We used to deliver to offices nearby but most of them have closed. People would order a lot and buy food for their colleagues on special occasions. That era is over." | "We used to deliver to offices nearby but most of them have closed. People would order a lot and buy food for their colleagues on special occasions. That era is over." |
| Prime Minister Alexis Tsipras faced a rebellion from within his left-wing Syriza party over the tough austerity measures being demanded by other eurozone leaders, who are among Greece's creditors. | Prime Minister Alexis Tsipras faced a rebellion from within his left-wing Syriza party over the tough austerity measures being demanded by other eurozone leaders, who are among Greece's creditors. |
| But last week's vote in the Greek parliament paved the way for Greece to receive the €7bn bridging loan that enabled the reopening of the banks. | But last week's vote in the Greek parliament paved the way for Greece to receive the €7bn bridging loan that enabled the reopening of the banks. |
| Mr Tsipras has since replaced his rebel ministers but analysts say his government has been weakened and fresh elections may be held in September or October. | Mr Tsipras has since replaced his rebel ministers but analysts say his government has been weakened and fresh elections may be held in September or October. |
| The Greek parliament is due to hold a second vote on Wednesday on measures including justice and banking reforms. The government is again likely to scrape through, supported by opposition parties. | The Greek parliament is due to hold a second vote on Wednesday on measures including justice and banking reforms. The government is again likely to scrape through, supported by opposition parties. |
| Representatives from Greece's creditors - known as the Troika - are due to arrive in the country soon and talks on the new bailout are expected to last about a month. | Representatives from Greece's creditors - known as the Troika - are due to arrive in the country soon and talks on the new bailout are expected to last about a month. |
| The tough negotiations over Greece have also revealed divisions within the eurozone about the future of the bloc. | The tough negotiations over Greece have also revealed divisions within the eurozone about the future of the bloc. |
| Germany, which is the largest contributor to Greek rescue funds, has taken a tough line on Greece, while other states, such as France, have appeared more conciliatory. | Germany, which is the largest contributor to Greek rescue funds, has taken a tough line on Greece, while other states, such as France, have appeared more conciliatory. |
| On Monday, French President Francois Hollande put forward his ideas for a new parliament for the eurozone countries and a shared budget. | On Monday, French President Francois Hollande put forward his ideas for a new parliament for the eurozone countries and a shared budget. |
| The eurozone is currently managed by the Eurogroup, made up of the finance ministers of each nation. | The eurozone is currently managed by the Eurogroup, made up of the finance ministers of each nation. |