Greek banks reopen after three-week shutdown, taxes hiked

Athens

Banks in Greece reopened today after a three-week shutdown imposed to stop a run on ATMs crashing the financial system, but citizens woke up to widespread price hikes as part of a cash-for-reform deal with the country's creditors.

The shutdown since June 29 is estimated to have cost the economy some 3.0 billion euros ($3.3 billion) in market shortages and export disruption.

Capital controls including a block on key transfers to foreign banks and a ban on the opening of new accounts remain in force, although Greeks can now withdraw a bigger amount at once per week, rather than the 60 euro daily limit that had forced them to queue daily for the last three weeks.

A weekly withdrawal limit of 300 euros would be imposed initially until Friday, with the restriction to be raised to 420 euros from Saturday.

The government is meanwhile expected to make a 4.2-billion euro payment Monday to the European Central Bank (ECB), made possible by the granting of a short-term "bridge" loan of 7.16 billion euros by the European Union on Friday.

The loan will also enable Athens to repay debts to the International Monetary Fund (IMF) outstanding since June.