ATM queues are set to get worse in Greece, with banks staying shut until Thursday.
Reuters is reporting that the head of the Greek Bank Association says banks will remain closed tomorrow and the day after, and banking sources say it they could remain shut until at least Friday.
Reuters: Greek Bank Association head confirms banks will remain closed on Tuesday & Wednesday – daily withdrawals limit remains at 60 euros
— Sky News Newsdesk (@SkyNewsBreak) July 6, 2015
Greek announced a bank holiday on June 28 and banks have been shut ever since, with capital controls allowing people to only withdraw up to €60 (£42.5, $US66) per day from ATMs.
Outgoing finance minister Yanis Varoufakis said he hoped to have banks open as soon as Tuesday, but that always looked hugely ambitious.
After meeting with the finance ministry and banking representatives on Monday, Reuters reports that Louka Katseli, chair of the National Bank of Greece, said: “We decided to extend the bank holiday by two days — Tuesday and Wednesday.”
Greece could also cut cash withdrawal limits, according to IHS Global Insight’s senior economist
Diego Iscaro. Greek banks have effectively been on life support, relying on Emergency Liquidity Assistance (ELA) from the European Central Bank (ECB) to keep ATMs full, but the ECB has so far not extended any more help following Sunday’s resounding “No” from Greece on current bailout proposals.
Some people expect the limit to be cut to just €20 (£14, $US22) a day. Not only would this be tough for Greeks to survive on, they may not even be able to get it — many ATMs in crowded urban areas are apparently almost completely out of €20 and €10 notes.