Greek banks reopen on Monday

Monday, Jul 20 2015

Greek banks will reopen on Monday as Prime Minister Alexis Tsipras rebuilds his government to shore up support for a bailout agreed upon with the country’s creditors. The banks, which have remained closed since June 29, will open July 20, the government said on Saturday. Most capital controls concerning withdrawals and money transfers will remain, and while the daily limit was held at 60 euros ($65), a cumulative limit of 420 euros a week was set, it said.

Lenders will reopen a week after Tsipras and creditors agreed to a bailout program and Greek lawmakers approved legislation needed to release funding for the country. Hours after the vote, the European Central Bank approved emergency financing for the country’s lenders and the European Union finalized a bridge loan on Friday to provide a stop-gap until a full three-year rescue program, worth as much as 86 billion euros, is settled.

Following Thursday’s vote, Tsipras told his associates that he would be forced to lead a minority government until a final deal with creditors is concluded. In all, 64 of the parliament’s 300 lawmakers voted against the bill. Half of the “no” votes came from Syriza, including former Finance Minister Yanis Varoufakis.

The German parliament also cleared the way for talks on a third bailout after Chancellor Angela Merkel warned that failing to try would be reckless and sow chaos. Finland’s parliament gave its approval Thursday, while Austrian lawmakers also backed negotiations.

Euro is currently being traded around 1.0830 level. Pair is likely to find support around 1.08 handle and resistance near 1.0880 area. There will be no major data releases in the rest of the session.

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