EUROZONE-GREECE/BANKS Greeks resign themselves to ongoing bank closures

Record ID: 148079

  • Title: EUROZONE-GREECE/BANKS Greeks resign themselves to ongoing bank closures
  • Date: 7th July 2015
  • Summary: ATHENS, GREECE (JULY 7, 2015) (REUTERS) VARIOUS OF PEOPLE QUEUING OUTSIDE BANK WOMAN HOLDING HER PURSE VARIOUS OF PEOPLE IN QUEUE OUTSIDE BANK (SOUNDBITE) (Greek) PASSERBY, PAVLOS CHRISTOU, 61, ENGINEER, SAYING: "It will be a miracle to have the banks open in two days. I don't believe this will happen. You have to have a transitional period so that they can again win the t
  • Embargoed: 22nd July 2015 13:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: General
  • Reuters ID: LVA658WN67FMH8TVI2TMC7PUXZCE
  • Aspect Ratio: 16:9
  • Story Text: Greek banks remained closed for a ninth day on Tuesday (July 7), as the country faces a last chance to stay in the euro zone when Prime Minister Alexis Tsipras puts out proposals for an aid deal to an emergency euro zone summit.
    With the country teetering on the brink of economic collapse, a bank closure in force since the bailout talks collapsed has been prolonged until Thursday at least, and cash withdrawals remain limited to 60 euros a day, with 20 euro notes running out.
    People continued to queue at ATMs, with some 1,000 branches open only to pensioners who don't have cash cards.
    But the mood remained calm, with many Greeks resigned to the situation continuing or even worsening.
    "It will be a miracle to have the banks open in two days. I don't believe this will happen. You have to have a transitional period so that they can again win the trust of the people so that there is no bank run. You can't have banks opening within just a couple of days. I believe that these things take their course. We will show patience. We will wait and see," said pensioner Pavlos Christou.
    "I don't want to say something nasty. I love my country. Unfortunately they (government) have brought the country to the brink of destruction. The poor youth, one and half million unemployed, who live on their parents' pensions. What will happen with these poor children," another man, Nikos, told Reuters.
    "It's unpleasant. The situation right now is still viable but if it continues like this, we will probably have a problem. So far people are still being served and can make do, but the future is still unknown," said 72-year-old pensioner Emmanouel Paraskevas.
    "What can we do? We can only be patient," said another man.
    If Greek banks run out of money and the country has to print its own currency, it could lead to a state leaving the euro for the first time since it was launched in 1999, creating a precedent and raising doubts about the long-term viability of an incomplete European monetary union.
    The ECB left unchanged its emergency liquidity lifeline for Greek banks but raised the discount it charges on collateral they have to present for funds - a measure banking sources said was largely symbolic since the total they could borrow was capped.
    Tsipras must now travel to Brussels to persuade the bloc's other 18 leaders, many of whom are exasperated after five years of Greek crisis, to open rapid negotiations for a major new loan to rescue his country.
    At stake at the emergency summit beginning at 6 p.m. (1600 GMT) in Brussels is more than just the future of Greece, a nation of 11 million that makes up just 2 percent of the euro zone's economic output and population.
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