Greek banks to reopen with controls

Greek banks are set to reopen after three weeks of closures sparked by the deadlock over the country’s debt.

Athens reached agreement with its international creditors last week, in a cash-for-reforms deal that helped Greece avoid exiting the eurozone.

But several restrictions remain in place, and Greeks also face price rises with an increase in Value Added Tax.

Meanwhile Germany has said it is prepared to consider further debt concessions to Greece.

Queues at ATMs have been a feature of life in Greece for weeks, with people waiting in line each day to withdraw a maximum of €60 (£41) a day, a restriction imposed amid fears of a run on banks.

From Monday, the daily limit becomes a weekly one, capped at €420 (£291), meaning Greeks will not have to queue every day.

But a block on transfers to foreign banks and a ban on cashing cheques remain in place.

Greeks will also pay more on a range of goods and services, including taxis and restaurants, with VAT rising from 13% to 23%.

The VAT rise was among a package of reforms demanded by Greece’s creditors to open talks on the proposed €86bn (£60bn) bailout.

Members of Prime Minister Alexis Tsipras’s party rebelled against the austerity measures demanded by creditors when it was voted through parliament,

But it paved the way for Greece to receive a bridging loan, which enables the reopening of the banks and for Athens to repay debts to the European Central Bank and the International Monetary Fund due on Monday.

Both Greece and the IMF, have been arguing for a restructuring of its €320bn debt, saying its current position is “unsustainable”.

The German Chancellor, Angela Merkel, ruled out a “a classic haircut” – a markdown of Greece’s debts.

But she told ARD TV other forms of relief, such as extending maturities or slashing interest rates, could be considered once the details of the latest programme are worked out.

She also played down reports of a row with her Finance Minster Wolfgang Schaeuble, who suggested in an interview with Der Spiegel magazine he would rather resign than defend something he did not believe in, reports the BBC.