Emergency talks as Greek exit from euro looms

GREEK banks will remain shut until July 6, with locals only able to withdraw around $86 a day under restrictions on bank withdrawals.

Greece closes banks as ATMs run dry

GREEK banks will remain shut until July 6 and the country is imposing restrictions on bank withdrawals after a recommendation by the Bank of Greece, the country’s prime minister has announced.

The desperate move comes after two days of long lines forming at ATMs across the country, following Prime Minister Alexis Tsipras’ sudden decision to call a referendum on creditor proposals for Greek reforms in return for vital bailout funds.

ATM withdrawals are limited to 60 euros ($A86.71) a day for locals, but tourists staying in Greece and anyone with a credit card issued in a foreign country will not be affected by the measures to limit bank withdrawals.

A government statement issued said “anyone visiting or about to visit Greece” that the capital control measures announced a few hours earlier “do not apply to those wishing to make transactions and withdrawals with a credit card issued in their home country”.

Earlier yesterday, the European Central Bank decided not to increase the amount of emergency liquidity the lenders can access from the central bank — meaning they have no way to replenish fast diminishing deposits.

“It is now more than clear that this decision has no other aim than to blackmail the will of the Greek people and prevent the smooth democratic process of the referendum,” Tsipras said in a televised address to the nation.

Uncertain future ... anxious Greek citizens withdraw cash at an Alpha Bank ATM in central Athens on June 28. Picture: AFP/Angelos Tzortzinis

The referendum is set for next Sunday. But Greece’s current bailout expires on Tuesday, and the 7.2 billion euros ($8 billion) remaining in it will no longer be available to Greece after that date.

Without those funds, Greece is unlikely to be able to pay a 1.6 billion euro International Monetary Fund debt repayment due the same day.

Tsipras gave no details of how long banks will remain closed or what restrictions will be placed on transactions. Two financial sector officials said the banks would likely remain shut for several days.

Set to hold talks ... European Central Bank president Mario Draghi. Picture: AP Photo/Michael Probst

Obama, Merkel urge Greek reform

Meanwhile US President Barack Obama and German Chancellor Angela Merkel have agreed that Greece needs to find its way back to a path of reform and avoid an exit from the eurozone, the White House says.

In a telephone call about the unfolding crisis on Sunday, Obama and Merkel “agreed that it was critically important to make every effort to return to a path that will allow Greece to resume reforms and growth within the eurozone,” the White House said.

Protest ... a worker cleans the word ''NO'' written in Greek, graffitied on a train station wall, ahead of a referendum. Picture: AP Photo/Thanassis Stavrakis

Desperate Greeks in frantic search for ATMS

Following news of bank closures, Greeks raced to find ATMS for emergency cash.

“I don’t know what happens — it’s crazy,” a Greek woman, Voula, told AFP while on the lookout for a working cashpoint in Athens.

In central Athens, as least a dozen ATMs could no longer dispense bank notes, prompting Athenians and tourists alike to roam the streets in a frantic hunt for cash.

Greece held an emergency gathering of its systemic stability council, as the clock ticked on a two-day countdown to a possible default.

My brother sends me this pic of ATM lines in Greece, many have run out of cash already. pic.twitter.com/tceblU28ZS

— Andrea Tantaros (@AndreaTantaros) June 27, 2015

“I tried many machines — five, six, eight, ten — I am not sure,” Voula added after failing to withdraw money from yet another ATM.

“I feel anxious, sad, angry about the government. I hate them! They put Greece on a very dangerous adventure.”

At one particular cash machine in the Greek capital, a queue of more than 100 people snaked along the street.

According to an anonymous banking source in Greece, only 40 per cent of the nation’s cash machines currently have money in them — purely because they cannot be restocked with banknotes quickly enough.

Emergency talks ... European Council President Donald Tusk (left) speaks with European Central Bank Governor Mario Draghi (right) and European Commission President Jean-Claude Juncker during a round table meeting at an EU summit in Brussels on June 25. Picture: AP Photo/Geert Vanden Wijngaert

Tourists urged to carry cash in Greece

European nations have urged their nationals to carry cash with them when vacationing in Greece as the country hurtles towards a banking crisis.

The German foreign ministry on Sunday recommended that tourists “take sufficient amounts of cash” when visiting Greece, a top vacation spot for Germans, keep tabs on the evolving situation and check for any updates to its travel recommendations.

Many bank cash machines in Greece are already empty and there were long lines at those still working.

Britain’s foreign office warned travellers “of the possibility that banking services — including credit card processing and servicing of ATMs — throughout Greece could potentially become limited at short notice.”

It said “make sure you have enough euros in cash to cover emergencies, unforeseen circumstances and any unexpected delays.”

“Make sure you have enough Euros in cash”. UK Foreign Office updated travel advice on Greece: https://t.co/UCO4xDou9F pic.twitter.com/KxP3xiIyBJ

— Ed Conway (@EdConwaySky) June 28, 2015

If capital controls are imposed, businesses may not want to accept credit cards any longer as they would have trouble accessing their bank accounts, even if card transactions are authorised.

“There is some information according to which some restaurants and filling stations haven’t accepted card payments for some time and are taking just cash,” said the Swedish foreign ministry.

Note saying 'not a penny left' stuck to cash machine in #Greece as eurozone exit looms http://t.co/HAj55MmtlR pic.twitter.com/mXRT03AGxX

— ITV News (@itvnews) June 28, 2015

Denmark, Finland and the Netherlands also warned their nationals not to rely on cards and take cash when visiting Greece.

But Andreas Andreadis, President of Greek Tourism Confederation, said “foreign clients have no problems with money transactions” and “their credit cards won’t be compromised by capital controls.”

Originally published as Emergency talks as Greek exit from euro looms