Greek Banks to Reopen, With Strict Withdrawal Limits, as Tsipras's New Cabinet Takes Over
by Eleni Chrepa
Greek banks will reopen on Monday as Prime Minister Alexis Tsipras rebuilds his government to shore up support for a bailout agreed with the country's creditors.
Most capital controls concerning withdrawals and money transfers will remain, and while the daily limit was held at 60 euros ($65), a cumulative limit of €420 a week was set, it said.
Lenders will reopen a week after Tsipras and creditors agreed to a bailout program and Greek lawmakers approved legislation needed to release funding for the country. Hours after the vote, the European Central Bank approved emergency financing for the country's lenders and the European Union finalized a bridge loan on Friday to provide a stop-gap until a full three-year rescue program, worth as much as 86 billion euros, is settled.
"This will improve the image of the economy for Greeks inside the country," said Aristides Hatzis, an associate professor of law and economics at the University of Athens. "It's just the beginning and a more ambitious option wasn't possible."
The prime minister's office said Panagiotis Skourletis will replace Panagiotis Lafazanis, who heads the Left Platform fraction of Tsipras's Syriza party, as energy minister. George Katrougalos will succeed Skourletis as labor minister. Nadia Valavani, Dimitris Stratoulis, Kostas Isichos and Nikos Chountis, who also, as Lafazanis, voted against the legislation, were removed from the government.
HELD HOSTAGE
Following Thursday's vote, Tsipras told his associates that he would be forced to lead a minority government until a final deal with creditors is concluded. In all, 64 of the parliament's 300 lawmakers voted against the bill. Half of the "no" votes came from Syriza, including former Finance Minister Yanis Varoufakis.
Tsipras is "being held hostage by both his lawmakers, who refuse to vote for the measures, and by the opposition, whose support he needs to pass the measures through parliament," Hatzis said. "The only way out is elections." His new government will probably last "a maximum of two months," he said.
GERMAN RESPONSE
Meanwhile in Berlin the general secretary of Chancellor Angela Merkel's Christian Democrats has urged lawmakers who voted against opening talks on a third financial rescue for Greece to reconsider.
German lawmakers on Friday gave Berlin approval to negotiate a third bailout for Greece by 439 votes to 119, with 40 abstentions. There was a sizeable rebellion among Merkel's conservatives, with nearly a fifth voting "no".
The Bundestag will have to vote again on any agreement between Greece and its creditors for a third bailout.
Separately, the German finance ministry dismissed speculation in German media on Saturday that Finance Minister Wolfgang Schaeuble was considering resignation over differences of opinion with Chancellor Angela Merkel over Greece.
Germany's "Der Spiegel" printed an interview with 72-year-old Schaeuble in which he said he could always ask the president to relieve him of his duties in response to a question about whether problems could arise if the chancellor and finance minister had divergent opinions on financial support for Greece.
Schaeuble has questioned whether Athens would ever get a third bailout and has said Greece might be better off taking a time-out from the euro zone to sort out its economic problems - a suggestion that Merkel said would not work.
Greek banks will reopen on Monday as Prime Minister Alexis Tsipras rebuilds his government to shore up support for a bailout agreed with the country's creditors.
Most capital controls concerning withdrawals and money transfers will remain, and while the daily limit was held at 60 euros ($65), a cumulative limit of €420 a week was set, it said.
Lenders will reopen a week after Tsipras and creditors agreed to a bailout program and Greek lawmakers approved legislation needed to release funding for the country. Hours after the vote, the European Central Bank approved emergency financing for the country's lenders and the European Union finalized a bridge loan on Friday to provide a stop-gap until a full three-year rescue program, worth as much as 86 billion euros, is settled.
"This will improve the image of the economy for Greeks inside the country," said Aristides Hatzis, an associate professor of law and economics at the University of Athens. "It's just the beginning and a more ambitious option wasn't possible."
The prime minister's office said Panagiotis Skourletis will replace Panagiotis Lafazanis, who heads the Left Platform fraction of Tsipras's Syriza party, as energy minister. George Katrougalos will succeed Skourletis as labor minister. Nadia Valavani, Dimitris Stratoulis, Kostas Isichos and Nikos Chountis, who also, as Lafazanis, voted against the legislation, were removed from the government.
HELD HOSTAGE
Following Thursday's vote, Tsipras told his associates that he would be forced to lead a minority government until a final deal with creditors is concluded. In all, 64 of the parliament's 300 lawmakers voted against the bill. Half of the "no" votes came from Syriza, including former Finance Minister Yanis Varoufakis.
Tsipras is "being held hostage by both his lawmakers, who refuse to vote for the measures, and by the opposition, whose support he needs to pass the measures through parliament," Hatzis said. "The only way out is elections." His new government will probably last "a maximum of two months," he said.
GERMAN RESPONSE
Meanwhile in Berlin the general secretary of Chancellor Angela Merkel's Christian Democrats has urged lawmakers who voted against opening talks on a third financial rescue for Greece to reconsider.
German lawmakers on Friday gave Berlin approval to negotiate a third bailout for Greece by 439 votes to 119, with 40 abstentions. There was a sizeable rebellion among Merkel's conservatives, with nearly a fifth voting "no".
The Bundestag will have to vote again on any agreement between Greece and its creditors for a third bailout.
Separately, the German finance ministry dismissed speculation in German media on Saturday that Finance Minister Wolfgang Schaeuble was considering resignation over differences of opinion with Chancellor Angela Merkel over Greece.
Germany's "Der Spiegel" printed an interview with 72-year-old Schaeuble in which he said he could always ask the president to relieve him of his duties in response to a question about whether problems could arise if the chancellor and finance minister had divergent opinions on financial support for Greece.
Schaeuble has questioned whether Athens would ever get a third bailout and has said Greece might be better off taking a time-out from the euro zone to sort out its economic problems - a suggestion that Merkel said would not work.
No comments:
Post a Comment