Queues form in panic as Greek banks, ATMs close

BANKS and ATMs were shut across Greece yesterday on the first day of capital controls, a dramatic twist in the country’s five- year financial saga.

Despite that, pensioners lined up just after dawn at banks hoping they would have access to their pensions, which were due to be paid yesterday.

The closures came after Greeks rushed to ATMs over the weekend to withdraw money after Prime Minister Alexis Tsipras’s surprise call for a referendum on creditor proposals for the reforms Greece should take to gain access to blocked bailout funds.

The referendum has been

set

for Sunday and the Government has been advising Greeks to reject the proposals.

The capital controls are meant to staunch the flow of money out of banks and spur the country’s creditors to offer concessions before Greece’s bailout program expires today.

Once that happens, Greece loses access to the remaining 7.2 billion of rescue loans and is unlikely to be able to meet a 1.6billion repayment to the International Monetary Fund due the same day. The crisis has thrown into question Greece’s future and membership in the 19- nation shared euro currency – and even the European Union.

Overnight, massive queues formed at petrol stations, with worried motorists seeking to fill up and pay with credit cards while they were still accepted.

The Government announced bank transaction restrictions late Sunday night, limiting daily withdrawals to 60 per person per ATM card. ATMs were expected to reopen yesterday, while banks would remain shut for at least six days.

Although credit and cash card transactions have not been restricted, in practice, most retailers were not accepting card transactions yesterday morning. Deputy Minister of State Terence Quick said special arrangements would be made for pensions. He said retirees would be allowed to access their full pensions in cash owing to the fact many didn’t have bank cards.

“Under the bank transaction restrictions, electronic transfers and bill payments are allowed but only within the country,’’ he said.

The Government also stressed the controls would not affect foreign tourists, who would have no limits on cash withdrawals with foreign bank cards.

The decision to impose capital controls came after a Bank of Greece recommendation, Tsipras said during a televised address on Sunday night.