Banks across Greece reopened on Monday after a three-week closure, but with restrictions on cash withdrawal. According to a decree passed by the Greek government, the daily cash withdrawal limit shall be 60 euros ($65). In addition, a weekly limit has been imposed. For example, a depositor who doesn't withdraw cash on Monday can withdraw 120 euros ($130) on Tuesday, and so on, up to 420 euros ($455) a week, reports Fox News. The restrictions on cheque withdrawals remain, with bank customers still not able to cash checks, only deposit them into their accounts. Also people will not be able to get cash from abroad with their credit or cash cards, only make purchases. There are also restrictions on opening new accounts or activating dormant ones. The decree has deferred by a month the deadline for filing income tax returns. Income tax returns can now be filed up until August 26.
While the reopening of banks marks the return of some kind of normalcy to the Greek economy, long-term problems remain. Unemployment is extremely high - 25 percent - and Greece's recession is comparable to one of history's most famous economic crashes, the Great Depression that hit the U.S. in the late 1920's reports the BBC.
Long lines reportedly began forming at banks as people accessed deposit boxes, which are not subject to any capital controls. An official at EFG Eurobank, one of the country's largest banks, said: "We are expecting queues in our branches in the first two or three days. Many people will ask to open their safe deposit boxes," according to Sky News.
The reopening of the banks comes as Europe's central bank promised 900 million euros in new emergency funding for Greece on Thursday. Formal negotiations on a new bailout - worth as much as 86 billion euros ($96 billion) - have now begun after several European parliaments, including Germany's, voted in favor. European leaders agreed last week to offer Greece a new rescue - its third since 2010. Europe is giving Greece an interim loan worth 7 billion euros ($7.8 billion) to tide it over, but considering Greece's financial crisis, the amount won't last long.
