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Banks in Greece remain shut as closures are extended to next week

Banks in Greece remain shut as closures are extended to next week

The government of Greece has extended bank closures and a daily limit of € 60 (£43; $66) on ATM withdrawal until Monday. These curbs were imposed on June, 28 after a stalemate in bailout talks with creditors which led to a mad rush for withdrawals.

The European Central Bank made the decision not to increase support for the Banks in Greece until a resolution to the debt crisis is reached.

Alexis Tsipras, the Greek PM says he will submit “credible” reform plans on Thursday ahead of the Sunday deadline issued by EU to find a solution.

All 28 EU members will be involved in an emergency summit and not the 18 Eurozone countries only.

Donald Tusk, the European Council President warned it was now the “most critical moment in the history of the Eurozone”

After emergency talks of the Eurozone leaders in Brussels on Tuesday, he said, “the final deadline ends next week”.

In order to avoid bankruptcy and the possibility of crashing out of euro currency, Greece is desperate for a third bailout- (follow the link for additional information).

The finance ministry in a statement issued on Wednesday said “ the bank holiday is extended to July 13”.

This announcement was made after the European Central Bank- which has provided emergency liquidity to keep the banks in Greece from collapsing-said it would leave its current support level unchanged.

The last international bailout programme for Greece expired on June 30 and it missed an International Monetary Fund (IMF) payment.

Christine Lagarde, the chief of International Monetary Fund on Wednesday reiterated that Greece’s debt would have to be restructured, echoing the assertion by her organization that some debt relief was needed.

The notion of further reducing the amount Greece is expected to pay back to creditors is one that Germany-Europe’s largest individual lender- has refused to do so far.

Washington warnings

The US treasury Secretary Jack Lew however argues that debt relief was required for a deal in order to avoid a “geopolitical mistake” of Greece exiting from the Eurozone. Lew said such assurances were needed for Tsipras to receive domestic backing for a deal.

Lew said in Washington, “I don’t think any prime minister of Greece could sell all the additional fiscal measures, plus the structural reforms that are needed without some sense of what the debt sustainability looks like”.

While speaking during a fractious debate on the debt crisis in the European Parliament on Wednesday, Mr. Tsipras criticized prior bailouts for turning Greece into an “austerity laboratory.

He was speaking after the people of Greece refused the latest proposals from creditors during the referendum held on Sunday. 61% of the Greeks who participated in the voting rejected the reforms-for-cash deal that was put forward by the creditors- (follow this link for additional information).

Meanwhile, the government of Greece has insisted there is no threat to fuel or food supplies.

The Ministry of Economy, Infrastructures, Maritime Affairs and Tourism, in a statement “reassures both the Greek citizens and the visitors (tourists) that there are adequate food supplies in the market and that their prices will remain stable.