Greek banks to reopen after shutdown following Greece Crisis on July 20

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The Greek banks are shutdown for three weeks following Greece Crisis and this has affected the country’s economy significantly. Already, the economy of Greece is struggling a lot with almost 3.0 billion euros not counting lost tourism revenue, claimed a recent report.

Citing sources from the e-commerce groups, the Kathimerini daily stated that the retail trade alone suffered a loss of almost 600 million euro with the apparel taking the main blow. The exports suffered a 240 million euro hit after the eruption of the Greece Crisis, claim the exporters’ association.

As per the Athens Chamber of Commerce and Industry (EBEA), around 4,500 containers with raw materials and finished products are blocked by the customs personnel. With a major backlog of cheques and bills of exchange that cannot be paid, almost 6 billion euros worth business transactions have been frozen, claimed the chamber.

The banks’ closed down on June 29 following the rejection of the austerity demands of the international creditors by the radical Greek government. They called a referendum on the problem that the country backed by more than 61 percent.

With the creditors threatening the nation with a eurozone exit, the government faced total economic paralysis and it has to accept a package of difficult fiscal reforms in the last week. The bank restrictions did not pose any effect on the foreign card holders, but the disaster also depressed new bookings at the peak of the hectic tourist season.

Due to the disruption, the Greek government provided Athens commuters free passage on the public transport network of the city for around a fortnight. This is a measure that is expected to cost the state a budget of 10 million euros, claim the reports.

On Thursday, the European Central Bank increased its lifeline to Greek banks by around 900 million euros. Also, the eurozone nations agreed to the significant short term funding. In a response to this, the Greek government announced that the banks will resume their functionality on Monday. However, the withdrawals will be limited to 60 euros a day. Hope this will help the European nation to come out of what is termed as the Greece Crisis.

 

 

 

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