EUROZONE-GREECE/BANKS-PENSIONERS Greek pensioners hope for re-opening of banks, say times are tough

Record ID: 148153

  • Title: EUROZONE-GREECE/BANKS-PENSIONERS Greek pensioners hope for re-opening of banks, say times are tough
  • Date: 8th July 2015
  • Summary: ATHENS, GREECE (JULY 6, 2015) (REUTERS) PEOPLE QUEUING OUTSIDE BANK / GRAFFITI READING (Greek): "BETTER DRACHMA AND BROKE THAN EURO SLAVES" VARIOUS OF PEOPLE WAITING TO GET MONEY FROM CASH MACHINE (SOUNDBITE) (Greek) PENSIONER, GEORGE KARNASOS, 71, SAYING: "We want them to listen to the voice of the Greek people and Draghi must give money to the banks so they open." (SOUND
  • Embargoed: 23rd July 2015 13:00
  • Keywords:
  • Location: Greece
  • Country: Greece
  • Topics: General
  • Reuters ID: LVA8HY64NBJGQRZZH9YJX15B074P
  • Aspect Ratio: 16:9
  • Story Text: Greeks were hopeful on Monday (July 6) to see banks reopening after they voted resoundingly to back the government in rejecting the austerity terms of a bailout.
    At queues in front of cash machines in Athens, people expressed their anxiety for a deal with Greece's creditors in order to see the capital controls imposed by the government of their left-wing leader Alexis Tsipras lifted.
    "We want them to listen to the voice of the Greek people and Draghi must give money to the banks so they open," pensioner George Karnasos said as he waited outside a bank in Athens to withdraw the 120 euros pensioners are entitled per day.
    "Something has changed, we are now waiting for the best, the people voted. We are all hoping for the best," 28-year old Panagiotis said as he took his 60 euro daily allowance from an ATM machine.
    "I do not know what will happen with the banks. I haven't even gotten last month's pension and I can only get 50 to 60 (euros) to get by. I am having a tough time like the rest of my family," pensioner Vana Kokirou said.
    "It could be that they (banks) open. No one can tell, it is hard to guess what will happen," added Panagiotis, another pensioner.
    With banks shuttered, cash machines running out of banknotes and sympathy for Athens among EU governments close to exhausted, Greece's fate is largely in the hands of Merkel and the European Central Bank.
    Asked about a realistic chance for the banks to re-open within the 48 hours following the referendum, political risk expert Wolfgang Piccoli, said it is a very unlikely scenario.
    "It is certainly misleading when they are saying they are going to reach a deal within the next 48 hours and banks will be open tomorrow. None of the two is going to happen," he said.
    "The banks will be closed tomorrow and, by the end of tomorrow, they are going to be out of money in the ATM machines. Unclear whether they can reopen on Wednesday at this point and certainly no deal within 48 hours. It could take weeks to reach a deal," he added.
    Greek bankers were expected to meet the central bank later on Monday, banking sources said, amid expectations that the government will have to issue a new decree extending the crippling closure of banks beyond Tuesday (July 7).
    After five years of economic crisis and mass unemployment, Greek electors voted 61.3 percent 'No' to the bailout conditions rejected by their radical leftist government, casting Greece into the unknown.
    EU officials said it would be hard to give Greece easier terms, not least because its economy has plunged back into recession since Tsipras' Syriza party won power in January. Public finances were now in a far worse position than when the rejected bailout deal was put together.
    Tsipras is due to meet European leaders on Tuesday in Brussels.
    Tsipras will arrive at the Eurogroup meeting with the results of the referendum in his pocket and after the resignation of his finance minister Yanis Varoufakis who stepped down on Monday morning.
    Varoufakis, whose forceful denunciations of creditors alienated many of his eurozone colleagues, left the job saying Prime Minister Alexis Tsipras believed it would help smooth the path to a new aid deal.
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