Banks in Greece Have only 4 More Days of Cash Left: Reports

Published Date : Jul 09, 2015

According to the head of banking association in Greece, Louka Katseli, the Greek banking system is left with only four days of cash guaranteed. According to Reuters, speaking about the prevalent economic conditions in Greece Katseli had said in an interview telecasted on Skai Television on Thursday morning that the regulators are aware that everything they have is secured until Monday.

The shutters of Greek banks went down for almost a week during referendum. The closure of banks initially was slated to last until July 7th, however, given the incumbent situations the decision has been taken to extend the bank closure until next week. 

In order to control the flow of capital, the country has imposed an upper limit of how much cash a person can withdraw from ATMs each day. The limit of withdrawal is set at US$66.62 per day from ATMs. A report released a week ago suggested that the Greece Banks may have only Euro 500 million left in physical cash. 

Even the companies who generally relied on the online banking transfers to regions located outside the country have also been affected by the downturn and has been shuttered by the move. Economic experts are of the view that unless the country receives a considerably larger ELA or Emergency Liquidity Assistance from the European Central Bank, there are meager hopes for revival, and the Greek banks are likely to remain closed until then. 

Until now €60 per day is considered enough for a majority of Greeks, since their average salary is much lower than  that, however if the crisis continues, it will push down the level further. Given the ongoing crisis in Greeks, analysts from Morgan Stanley said regarding the liquidity provisions in the Greek banking system that it is suggested that the ECB keeps their ELA levels unchanged and not hastily arrive at any political decisions for the sake of Euro’s future.