ECONOMY

Deal would help banking get back to normal

deal-would-help-banking-get-back-to-normal

A likely agreement between the government and its creditors should pave the way for banks to revert to more normal operations, as a deal would ensure the country’s financing for the next three years. However, bank officials stress that capital controls are here to stay for quite some time, changing the everyday management of households and enterprises.

On the condition that there is a positive outcome to the negotiations and an increase in the emergency liquidity assistance by the European Central Bank, bank sources say that even if branches don’t manage to reopen on Tuesday, it is likely that they will reopen by the end of next week. In contrast, if there are problems in the talks, the bank holiday will be extended another week.

If the government and its creditors agree to a third bailout program, there will be no problems in Internet and phone banking transactions involving large amounts of money, or in transactions involving the use of credit and debit cards within Greece.

A deal would also create optimism that the recapitalization of Greek banks will take place in a way that doesn’t have consequences on deposits, particularly those up to 100,000 euros that are guaranteed by law.