Greek banks have reopened for the first time in three weeks following discussions to avoid a debt default and eurozone exit.

Many restrictions remain, including a block on money transfers abroad and a ban on cashing cheques. The daily withdrawal limit of €60 (£41) will be changed to a weekly limit of €420 (£291), which should reduce the lengthy ATM queues that had become a feature Greek daily life.

Meanwhile, unemployment remains high and a rise in Value Added Tax (VAT) from 13% to 23% will mean that they will get less for their money than they did a week ago.

The VAT changes are part of the package agreed between the Greek government and it creditors to keep the country afloat and prevent it from crashing out of the Euro.

Both Greece and the IMF have called on the country’s creditors to accept a 30% haircut on the €320bn debt.

German Chancellor Angela Merkel ruled out a debt haircut, but has said that other debt reforms, including a reduction in interest rates and extending maturities, could become part of the negotiations.


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