Local banks in Greece would not open on Monday to avert a financial collapse after the European Central Bank froze emergency loans to the Greek lenders.
This was confirmed by Piraeus Bank SA Chief Executive Officer Anthimos Thomopoulos on Sunday after a meeting with the government's financial-stability panel, according to Bloomberg.
In an issued statement, Prime Minister Alexis Tsipras said "the decision (by Eurogroup) led today the ECB not to raise ELA (Emergency Liquidity Assistance) for the Greek government and made the Bank of Greece ask for the activation of measures of bank holiday and restriction of bank withdrawals," according to Business Spectator.
"People's deposits are safe, totally safe. Equally safe is the reimbursement of salaries and pensions. Any difficulties that may arise must be dealt with calmness. The more calm we are, the sooner we will get over this situation," Tsipiras added.
The Greek stock market will also not open on Monday to avoid fresh panic. Greeks have fled and bled working cash machines over the weekend as impending reports on restrictions came up.
Greek banks will remain closed at least until the July 5 referendum called by Prime Minister Alexis Tsipras on whether to accept austerity in exchange for a European bailout, unconfirmed reports quoting the Kathemerini newspaper on Sunday, Bloomberg reported.
