Greece moves out of default

Greece has initiated the process for the payment of a total 6.25 billion euros ($6.78 billion) to the European Central Bank (ECB) and the worldwide Monetary Fund (IMF), finance ministry officials told Reuters on Monday. “Greece is therefore no longer in arrears to the IMF”, Gerry Rice, the Fund’s director of communications, said in a statement.

“As we have said, the Fund stands ready to continue assisting Greece in its efforts to return to financial stability and growth”.

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 bank closures were the most visible sign of the crisis that took Greece to the brink of leaving the euro earlier this month, potentially undermining the foundations of the single European currency.

However, withdrawal limits are likely to remain in place until the end of the year as the financial system faces recapitalisation costs of up to €25bn, according to Mark Wall, chief economist at Deutsche Bank.

Dimitris Chronis, an Athens kebab shop owner, said the new taxes were bad news for his business. They have been imposed on many basic goods, from cooking oils to condoms, through to popular services, such as eating out at restaurants and ferries to the Greek islands. People would order a lot and buy food for their colleagues on special occasions.

The rise was among a package of reforms demanded by Greece’s creditors.

Four point two billion euros in principal and interest is on its way to the European Central Bank – meeting Monday’s deadline. Following months of growing distrust, Greece’s partners in the 19-country eurozone wanted to see measures enacted before bailout talks could begin.