Greek debt crisis: Banks reopen after three-week shutdown

Queues formed before banks opened on Monday morning

Greek banks are reopening after three weeks of closures sparked by the deadlock over the country’s debt.

Athens reached agreement with its international creditors last week, in a cash-for-reforms deal that helped Greece avoid exiting the eurozone.

But several restrictions remain in place, and Greeks also face price rises with an increase in Value Added Tax.

Meanwhile Germany has said it is prepared to consider further debt concessions to Greece.

Queues at ATMs have been a feature of life in Greece for weeks, with people waiting in line each day to withdraw a maximum of €60 (£41) a day, a restriction imposed amid fears of a run on banks.

Greece’s recession

While banks throwing opening their doors marks the return of some normality to the Greek economy, long-term problems remain.

Unemployment is stubbornly high, and as this chart shows, Greece’s recession is comparable to one of history’s most famous economic crashes.

But a block on transfers to foreign banks and a ban on cashing cheques remain in place.

Greeks will also pay more on a range of goods and services, including taxis and restaurants, with VAT rising from 13% to 23%.

The VAT rise was among a package of reforms demanded by Greece’s creditors to open talks on the proposed €86bn (£60bn) bailout.

BBC