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Greek banks shut down

Banks are closed in Greece. The government has imposed several capital controls to check the growing strains on the country’s decapacitated financial system. It is also feared that the country would be expelled from the Euro. After bailout talks between the Left-wing government and foreign banks failed, the European Central Bank has frozen any funding support to Greece’s banks, leaving the country’s government with little choice but to shut them down so that a complete collapse can be postponed. The government said banks will be closed and stock market will be shut throughout the week and there will be curbs on withdrawal of cash from ATMs. The machines will be reopened on Tuesday. Analysts fear these controls will have to last for many months now. Payments via debit or credit cards to accounts within Greece and online banking transactions within the country will be allowed but payments and transfers to accounts outside Greece are not allowed. All other transactions will not be permitted. A special committee will approve banking transactions deemed necessary to safeguard a public or social interest, including medical expenses or pharmaceutical imports. Pension payments will be exempt from the capital controls. Interest surcharges on due payments will not be allowed during the bank holiday period. Banks breaching the rules face fines of up to 10% of the amount of any transaction violating the control measures.

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