Greece is no longer in arrears with IMF and reopens its banks after three weeks – Financial Journal

Many customers lined up outside bank branches opened for the first time in three weeks.

Greece yesterday reopened its banks and began processing payments billions of euros in loans to international creditors, in the first signs of a return to normality after reaching agreement on negotiations for a new bailout in exchange for reforms.

Athens paid 4,200 million euros maturing yesterday the European Central Bank, after European officials agreed last week to provide emergency funding.

In addition, he paid 2,050 million euros to the International Monetary Fund on a delinquent loan from 30 June, when Greece became the first advanced economy to default on a loan to the IMF, along with 500 million euros due to the Bank of Greece.

“I can confirm that Greece paid today (yesterday ) all of its arrears to the IMF, equivalent to 1,600 million SDRs (about 2,000 million euros) and therefore is no longer in arrears to the IMF, “said communications director of the IMF, Gerry Rice.

“As we have said, the Fund stands ready to continue assisting Greece in its efforts to return to financial stability and growth,” he said.

The payment was possible thanks to the Hellenic country received yesterday the transfer of 7,160 million euros for the emergency loan from the European Financial Stability Mechanism (EFSM), briefed the Spanish newspaper Expansion.

This loan enabled Greece catch day in arrears with the IMF and the Bank of Greece and reimburse the ECB until it can receive funding under a new program of the European Stability Mechanism (ESM).

Reopening of banks

Many customers lined up outside bank branches opened for the first time in three weeks, after the capital controls measures implemented by the government to prevent the system from collapsing by a wave of withdrawals deposits.

Also took effect increases in value added tax (VAT) that were stipulated in the rescue, the VAT on food and public transport up to 23%, from 13% above.

The bag is closed until further notice.

The closures of banks were the most visible sign of the crisis that left Greece on the verge of leaving the euro zone at the beginning month.

The reopening came after Prime Minister Alexis Tsipras reluctantly agreed to severe austerity plan in exchange for a third bailout from its European partners, but a revolt in the ruling party Syriza now threat to the stability of his government.

Greek officials have said that new elections could be held as early as September or October.

“Things are better than in recent weeks. Thank God we did not finish in the drachma! “Said Maria Papadopoulou, a retired 62, told Reuters.

However, the limits on withdrawals remain at 420 euros per week instead of the above restriction of 60 euros a day. Moreover, even the payments and bank transfers abroad are not authorized. On Sunday, German Chancellor Angela Merkel ensured rapid negotiations for a new agreement, which is expected to amount to 86,000 million euros.

“Capital controls and restrictions on withdrawals will continue, but we are entering a new stage we all hope it normal,” said the director of the association of Greek banks, Louka Katseli.

The Greeks could deposit checks, but no money, pay bills and access boxes deposits and withdrawals without an ATM card

<-.! lower Banners ->