The decision of the European Central bank to increase the emergency liquidity assistance towards Greek banks by 900 million euros has paved the way for the banks to open as early as Monday or Tuesday next week. While the capital controls will mostly stay in place, the opening of the banks and provision of additional services will facilitate both businesses and households alike.
Bank customers will be able to make deposits in existing accounts, but will not be able to open new ones or add beneficiaries to existing accounts. New accounts will be able to be created for the payment of wages, pensions or unemployment benefits. Customers will also be able to issue new debit or credit cards, as well as set up web, mobile and phone banking for their accounts.
Funds will be able to be transferred between accounts held in the same ban and customers will also be able to pay debts and bills towards banks, public utilities and insurance agencies, in cash or by transferring funds from an account. Considerations are also being made to allow depositors to draw up to five days worth of daily withdrawals in one go (300 euros), in order to reduce queues at ATMs and banks. When the banks reopen, customers will have full access to deposit boxes, where 10 billion euros in cash is estimated to be stored.
After the first few days of the introduction of the capital controls, when many depositors rushed to draw their funds in a panic, the situation has been normalized, with daily outflow of deposits limited to 100 million euros. Cash injections in the banking system from tourists, on top of households and businesses making payments to the banks, state services and private sector, have helped out. As such, the 900 million euros provided by the ECB is expected last for some time, provided there are no dramatic developments.
Nowotny uncertain of bank reopening on Monday
The ECB board member and Austrian central banker Ewald Nowotny however is not as confident that the banks will reopen on Monday, according to a Reuters report. Mr. Nowotny argued that further issues need to be examined and has estimated that it may take between 6 and 8 weeks for the new bailout out to be prepared.
