While Greek PM Alexis Tsipras scrambled to clinch a 12th hour deal in Brussels at the EU-19 Summit on Sunday, senior officials in Athens reportedly told the Sunday Times that capital controls on Greek bank deposits will remain in place for at least six more months.
Officials of Greece’s four “systemic” banks will meet Monday with finance ministry officials to come up with ways on how to rescue the country’s crumbling banking system.
According to reports, options on the table include the consolidation of the four banks into two major banks; creation of a ‘bad bank’ to funnel “toxic” and non-performing loans as well as the possible “bail-in” of bank deposits.
A senior source said about 15 billion euros are needed to recapitalize the battered Greek banks. The meeting is expected to extend the cap controls on deposit withdrawals – currently each account holder is permitted to withdraw only 60 euros per day per account.
BBC reports says that the Greek government, the Bank of Greece (BoG) along with the four systemic Greek banks have not held talks on technical details to adopt any new currency in the event of a Grexit.
