Greece: Banks Reopen, Value-Added Tax Increase Begins

Bremmer’s outlook on the IMF’s ability to support the deal is related to the International Monetary Fund report last week that said Greece would need debt restructuring, something the current bailout isn’t explicitly contemplating.

Prime Minister Alexis Tsipras faced a rebellion from within his left-wing Syriza party over the tough austerity measures being demanded by other eurozone leaders, who are among Greece’s creditors. “This agreement is backed by the 28 member states”, Dombrovskis told reporters, adding that the bridging loan will allow Greece to clear its debt to the European Central Bank (ECB).

ATHENS, July 20 Greek banks made more use of emergency funding in June, increasing their borrowing by 12 percent from the previous month as deposit outflows continued, Bank of Greece data showed on Monday.

A default would have put further assistance from the ECB in jeopardy – and it is financial aid from the ECB that is now keeping the Greek banks functioning.

Representatives from Greece’s creditors – known as the Troika – are due to arrive in the country soon and talks on the new bailout are expected to last about a month. Greeks remain limited to withdrawing €420 a day and the country’s markets are due to remain shut until at least Wednesday.

Control, including the ones on flight of capital however, remain. The controls were introduced because negotiations with creditors had reached an impasse, fueling fears of a Greek exit from the euro and a bank run.

Customers queued up as bank branches opened for the first time in three weeks on Monday after they were closed to save the system from collapsing under a flood of withdrawals.

“The government was obliged to make a tactical retreat to save the country”, new Labor Minister Giorgos Katrougalos said Monday.