Greek debt crisis: Banks will be closed on Monday as capital controls are imposed

 
Sarah Spickernell
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Huge sums of cash have already been withdrawn from Greek banks (Source: Getty)
Greek banks will be closed tomorrow, Prime Minister Alexis Tsipras has said, while capital controls are put in place,
He would not confirm the length of time they will remain closed for, but said Greek deposits were safe. The decision follows the European Central Bank's (ECB) plan to not increase emergency funding for Greek banks.
In a statement, the ECB said it said it would work with Greece's central bank to “maintain financial stability”:
Following the decision by the Greek authorities to hold a referendum and the non-prolongation of the EU adjustment programme for Greece, the governing council declared it will work closely with the Bank of Greece to maintain financial stability.
On Saturday, huge sums of cash were withdrawn from machines across the country, after Prime Minister Alexis Tsipras made a surprise call for a referendum on a final bailout offer by the country’s creditors.
Fears that Greece was on the verge of exiting the Euro sent people flocking to ATMs across the country, resulting in around 35 per cent of Greek ATMs running out of bank notes, according to Reuters. Help from the ECB has been crucial in minimising the risk of insolvency.
Limits on bank transfers abroad are also expected as part of the measures to prevent an escalation of the crisis. The Greek cabinet is due to meet and discuss the measures later.
Greece is due to make its next loan repayment of €1.6bn (£1.1bn) to the IMF on Tuesday, but this is when its current bailout expires. Its request for an extension of the bailout was rejected by creditors, putting greece in a difficult position as its referendum will not take place until 5 July.

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