Greece debt crisis news: Greek banks to reopen Monday – after ECB votes for more emergency funding

The European Central Bank has pledged to raise an emergency funding limit by a modest €900 million

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The Independent Online

Greek banks will reopen Monday after the European Central Bank pledged to raise an emergency funding limit by a modest €900 million on Thursday.

The cash should tide the banks through another week at least. It may also mean the banks can reopen on a reduced service for the first time since they shut their doors on June 29, though restrictions on withdrawals may still apply.

"They will open on Monday," a senior banker told Reuters.

Last night, the Greek parliament voted through four key reforms relating to VAT and pensions that had been handed down from Brussels on Monday. Outside the gates of parliament, demonstrators lit petrol bombs and threw rocks in protest at the government's decision to accept decades more austerity to stay in the euro.

The Greek parliament voted in favour of the reforms with a staggering majority of 229. Only 64 ministers stood against the reforms. Half of those against came from the ruling Syriza party, sparking fears that a snap election might be called in September or October, once imminent danger of financial collapse had passed.

Greece must now meet a €3.5 billion bond repayment to the ECB on Monday, or its relationship with the ECB could be threatened.

If Greece fails to pay, the ECB would be unable to give Greece the money it needs to survive. Mario Draghi, president of the ECB, seemed relaxed about the payment. “All my evidence leads me to say that we will be paid and so will the IMF,” Draghi said. “So that is off the table.”

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