(30 June 2015 – Greece) Greece has closed its banks and imposed capital controls from 29 June as customers started rushing to ATMs to take money from their accounts.
The move follows the breakdown of bailout talks between the government and foreign lenders, leaving the European Central Bank (ECB) to freeze vital funding support to Greece’s banks.
At this stage banks are expected to be closed all next week including foreign banks to reopen on 7 July, with a daily €60 (A$87) limit on cash withdrawals from cash machines, which will operate again on 6 July.
Capital controls are likely to last for many months at least.
The impending default of €1.6 billion of loans from the International Monetary Fund (IMF) and ECB leaves Greece sliding towards a euro exit.
With speculation continuing over the failed talks, Greeks have taken out billions of euros from their accounts, with long queues at supermarkets, petrol stations and ATMS as shoppers stocked up on essentials.
Greek Prime Minister Alexis Tsipras called a referendum for 5 July, calling on Greeks to reject the bailout and vote against the demands of lenders which want cuts to pensions and a raise in taxes.