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Greek MPs pass second set of reforms ahead of bailout deal

Greek MPs have passed a second set of reforms, paving the way for a crucial bailout deal.

The reforms - which include changes to the judiciary and banking systems - needed to be passed in order for negotiations to begin with creditors on a third bailout package worth €86 billion.

Without more financial support, Greece would face financial ruin and may be forced to exit the eurozone.

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Greek banks to reopen after three-week shutdown

The latest chapter in Greece's financial crisis begins today as the country's banks prepare to reopen.

Greeks will still be subject to bank withdrawal limits Credit: Reuters

However, capital controls will remain in place following the three-week shutdown although German Chancellor Angela Merkel has called for swift aid talks so Athens could also lift withdrawal limits.

The cautious reopening of the banks, and an increase in value added tax on restaurant food and public transport from Monday, are aimed at restoring trust inside and outside Greece after an aid-for-reforms deal last week averted bankruptcy.

"Capital controls and restrictions on withdrawals will remain in place but we are entering a new stage which we all hope will be one of normality," the head of Greece's banking association Louka Katseli told Skai television.

Greeks will be able to withdraw 420 euros a week at once instead of just 60 euros a day, but the limit will effectively remain the same and capital controls will also stay in place.

"That's not a normal life so we have to negotiate quickly," Merkel said in extracts from an interview with German public broadcaster ARD.

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