Greek banks closed till today

Athens: The Greek government extended the week-long bank holiday that started on June 29 till Wednesday, while its latest proposal for a debt deal was to be presented to an emergency Eurogroup meeting on Tuesday and an extraordinary eurozone summit later in the evening.

Greeks gave a resounding “No” to creditors' draft deal proposal in Sunday's referendum, which could possibly lead to a default and the Greek exit from the eurozone.

The extension of the bank closure, which was aimed at tightening capital controls to avert a further bank run and the collapse of the banking system, was announced after a meeting between Deputy Finance Minister Dimitris Mardas, Greek Bank Association chief Louka Katseli and other bankers on Monday night, Xinhua news agency reported.

Only 1,000 bank branches will be exempted, as it had happened last week, to service pensioners and the unemployed for social benefits. Each individual can withdraw up to 120 euros (about $131.50) weekly from these bank branches, while debit card users can withdraw up to 60 euros daily from ATMs.

Speaking to the media, Deputy Finance Minister Mardas said that the government would soon announce its decision on when savers may have access to safe deposits boxes in banks' vaults. Katseli said last week that ATMs were expected to run out of cash by Tuesday, but Economy Minister Giorgos Stathakis assured that depositors can withdraw cash until this Friday as long as the capital controls of 60 euros per day continue. Greece will resubmit Tuesday a request for a two-year bailout programme worth 29 billion euros through the European Stability Mechanism, according to government sources.

European officials and financial experts warn that any decisions should be made by July 20, when Greece needs to repay 3.5 billion euros in loan installments to the European Central Bank. Greece missed a similar crucial deadline on June 30 and was declared in arrears to the International Monetary Fund.

US calls on Greece, EU to find compromise

Washington: US Secretary of the Treasury, Jack Lew, spoke over telephone to Greek Prime Minister Alexis Tsipras and new Finance Minister Euclid Tsakalotos and urged them to resume dialogue with international creditors, according to a statement issued by the US Treasury Department.

The US asked Greece to reach a constructive agreement that will allow Greece to make difficult but necessary fiscal and structural reforms, Efe news agency reported. Lew told the Greek leaders on Monday that the US was closely monitoring the situation in Greece and offered to stay in touch over the next few days.

"The referendum is over, but our view here at the White House remains the same," Josh Earnest, White House spokesperson said in a daily press conference, adding that Greece should remain a part of the eurozone.

"It will require both a package of financing and reforms that will allow Greece to achieve, or at least be on a path towards some debt sustainability, but also be on a path towards economic growth," he added. An agreement will benefit all parties, said Earnest.