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You can find the current article at its original source at http://www.theguardian.com/business/live/2015/jul/20/greek-debt-crisis-banks-reopen-stock-market-closed-ecb-live
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| Version 3 | Version 4 |
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| Greek debt crisis: banks reopen but stock market still closed - live updates | Greek debt crisis: banks reopen but stock market still closed - live updates |
| (35 minutes later) | |
| 9.57am BST09:57 | |
| Krugman: I may have overestimated the competence of the Greek government..... | |
| Quote of the Day goes to Paul Krugman, the Nobel Prize-winning economist. | |
| He’s admitted to CNN’s Fareed Zakaria that he didn’t anticipate that Alexis Tsipras wouldn’t have a Plan B, in case Greece’s creditors didn’t fold. | |
| Krugman on assuming that Greece had an exit plan from the Euro: | |
| “…it didn’t even occur to me that they would be prepared to make a stand without having done any contingency planning ...amazingly - they thought they could simply demand better terms without having any backup plan. So certainly this is a shock. But, you know, in some sense, it’s hopeless in any case. …it’s not as if the terms that they were being offered before were feasible. I mean, the new terms are even worse, but the terms they were being offered before were still not going to work. So I, you know, I may have overestimated the competence of the Greek government.” | |
| Krugman also believes that Greece will eventually leave the eurozone, unless it is granted “enormous” debt relief. | |
| Paul Krugman on CNN: "I may have overestimated the competence of the Greek government" http://t.co/fwE2YZHpLU | |
| 9.33am BST09:33 | |
| The re-opening of Greece’s banks appears to be operating smoothly, judging by this photo from a National Bank branch in Athens: | |
| 9.17am BST09:17 | 9.17am BST09:17 |
| Today’s Greek VAT rise is the third since the country’s austerity programme began, five years ago: | Today’s Greek VAT rise is the third since the country’s austerity programme began, five years ago: |
| VAT on basic foodstuffs 2005: 8% 2006: 9% 2010: 11% 2011: 13% 2015: 23% Sharing the burden fairly & proportionately. https://t.co/zqlGhVSuGh | VAT on basic foodstuffs 2005: 8% 2006: 9% 2010: 11% 2011: 13% 2015: 23% Sharing the burden fairly & proportionately. https://t.co/zqlGhVSuGh |
| 9.08am BST09:08 | 9.08am BST09:08 |
| Greece's VAT rise hits customers | Greece's VAT rise hits customers |
| Greek consumers are facing higher prices today, as the sales tax hike demanded by its creditors is applied. | Greek consumers are facing higher prices today, as the sales tax hike demanded by its creditors is applied. |
| Sweeping VAT changes mean some food stuffs, restaurant meals and education services cost more. And even death (life’s other certainty alongside those taxes) will be more expensive: | Sweeping VAT changes mean some food stuffs, restaurant meals and education services cost more. And even death (life’s other certainty alongside those taxes) will be more expensive: |
| Associated Press has the details: | Associated Press has the details: |
| The VAT rose from 13% to 23%, making some meats, cooking oils other than olive oil, cocoa, vinegar, salt, flowers, firewood, fertilizer, insecticides, sanitary towels and other basics all more expensive. | The VAT rose from 13% to 23%, making some meats, cooking oils other than olive oil, cocoa, vinegar, salt, flowers, firewood, fertilizer, insecticides, sanitary towels and other basics all more expensive. |
| Services hit by the new VAT increases include restaurants and cafes, funeral parlors, taxis, cramming and tutorial schools very popular with Greek students seeking to make up for the deficiencies of the school system language institutes and computer learning centers. Public transport fares are expected to rise early next month. | Services hit by the new VAT increases include restaurants and cafes, funeral parlors, taxis, cramming and tutorial schools very popular with Greek students seeking to make up for the deficiencies of the school system language institutes and computer learning centers. Public transport fares are expected to rise early next month. |
| 8.47am BST08:47 | 8.47am BST08:47 |
| Greece 'gives order to repay ECB and IMF' | Greece 'gives order to repay ECB and IMF' |
| Bloomberg is reporting that Greece has spent almost all of the €7bn bridge loan hammered out by the eurozone on Friday. | Bloomberg is reporting that Greece has spent almost all of the €7bn bridge loan hammered out by the eurozone on Friday. |
| *GREECE SAID TO GIVE PAYMENT ORDER FOR EU 6.8BN TO CREDITORS, COVERS ECB, IMF, CENTRAL BANKS: FIN MIN OFFICIAL (Bloomberg) | *GREECE SAID TO GIVE PAYMENT ORDER FOR EU 6.8BN TO CREDITORS, COVERS ECB, IMF, CENTRAL BANKS: FIN MIN OFFICIAL (Bloomberg) |
| If so, Greece would have met today’s repayment to the European Central Bank, and covered its arrears to the International Monetary Fund (having missed two payments in recent weeks) | If so, Greece would have met today’s repayment to the European Central Bank, and covered its arrears to the International Monetary Fund (having missed two payments in recent weeks) |
| A bridge financing that'd be quickly spent. *GREECE SAID TO GIVE ORDER FOR EU6.8 BLN PAYMENTS TO CREDITORS; ECB, IMF, CEN BANK | A bridge financing that'd be quickly spent. *GREECE SAID TO GIVE ORDER FOR EU6.8 BLN PAYMENTS TO CREDITORS; ECB, IMF, CEN BANK |
| More to follow.... | More to follow.... |
| 8.45am BST08:45 | 8.45am BST08:45 |
| Customers at this National Bank branch in Athens received little numbered tickets to allocate places in the queue: | Customers at this National Bank branch in Athens received little numbered tickets to allocate places in the queue: |
| But heated conversations with the branch manager were on a strictly ‘first-come, first-served’ basis..... | But heated conversations with the branch manager were on a strictly ‘first-come, first-served’ basis..... |
| Updated at 9.07am BST | Updated at 9.07am BST |
| 8.37am BST08:37 | 8.37am BST08:37 |
| Across central Athens, customers waited patiently at this Alpha Bank branch: | Across central Athens, customers waited patiently at this Alpha Bank branch: |
| 8.31am BST08:31 | 8.31am BST08:31 |
| Although Greece’s banks are reopening, customers will find that many services are still off limits. | Although Greece’s banks are reopening, customers will find that many services are still off limits. |
| Macropolis, the news and analysis site, has compiled a list of the current restrictions, on top of the €420/week limit on cash withdrawals. | Macropolis, the news and analysis site, has compiled a list of the current restrictions, on top of the €420/week limit on cash withdrawals. |
| Here’s some highlights: | Here’s some highlights: |
| Greek banks open again after 3 weeks but there's really not that much you can do inside them https://t.co/cKemBkhvXE #Greece #euro | Greek banks open again after 3 weeks but there's really not that much you can do inside them https://t.co/cKemBkhvXE #Greece #euro |
| 8.16am BST08:16 | 8.16am BST08:16 |
| After months of drama, the financial markets are now more relaxed about Greece, according to David Cumming, head of UK equities at Standard Life Investments. | After months of drama, the financial markets are now more relaxed about Greece, according to David Cumming, head of UK equities at Standard Life Investments. |
| He told Radio 4’s Today Programme that: | He told Radio 4’s Today Programme that: |
| “The key question is: is the euro going to break up because of the Greek crisis, and the answer is no it isn’t. The second issue is when are we going to stop talking about it because it’s corrosive at the margin for business confidence in Europe. The answer is relatively soon. | “The key question is: is the euro going to break up because of the Greek crisis, and the answer is no it isn’t. The second issue is when are we going to stop talking about it because it’s corrosive at the margin for business confidence in Europe. The answer is relatively soon. |
| From a market perspective it [Greece] has become less of an issue”. | From a market perspective it [Greece] has become less of an issue”. |
| (via the BBC) | (via the BBC) |
| 8.09am BST08:09 | 8.09am BST08:09 |
| Queues also formed outside National Bank branches in Athens, but it all looks calm: | Queues also formed outside National Bank branches in Athens, but it all looks calm: |
| 8.01am BST08:01 | 8.01am BST08:01 |
| Customers queued outside this National Bank branch in Thessaloniki, Greece’s second city, this morning, as it reopened for the first time since late June: | Customers queued outside this National Bank branch in Thessaloniki, Greece’s second city, this morning, as it reopened for the first time since late June: |
| Updated at 8.11am BST | Updated at 8.11am BST |
| 7.56am BST07:56 | 7.56am BST07:56 |
| The head of Greece’s banking association, Louka Katseli, hopes that Greeks will put money back into their accounts: | The head of Greece’s banking association, Louka Katseli, hopes that Greeks will put money back into their accounts: |
| She told Skai television yesterday: | She told Skai television yesterday: |
| “Tomorrow when the banks reopen and normality is restored, let’s all help our economy. | “Tomorrow when the banks reopen and normality is restored, let’s all help our economy. |
| If we take our money out of chests and from our homes - where they are not safe in any case - and we deposit them in the banks, we will strengthen the liquidity of the economy,” | If we take our money out of chests and from our homes - where they are not safe in any case - and we deposit them in the banks, we will strengthen the liquidity of the economy,” |
| (quote via Reuters). | (quote via Reuters). |
| 7.51am BST07:51 | 7.51am BST07:51 |
| Adea Guillot, journalist with Le Monde, is tweeting from a bank branch in Athens: | Adea Guillot, journalist with Le Monde, is tweeting from a bank branch in Athens: |
| pic.twitter.com/szlbUgL2tU | pic.twitter.com/szlbUgL2tU |
| Yiannis,agent de securite ds une banque d'Athenes: tout se passe tres bien. Les gens sont calmes et philosophes. pic.twitter.com/UtRlFxqy15 | Yiannis,agent de securite ds une banque d'Athenes: tout se passe tres bien. Les gens sont calmes et philosophes. pic.twitter.com/UtRlFxqy15 |
| 7.48am BST07:48 | 7.48am BST07:48 |
| Athens stock market won't open today | Athens stock market won't open today |
| Traders on the Greek stock market must be itching to get back to work after their three week delay. But they’ll have to be patient. | Traders on the Greek stock market must be itching to get back to work after their three week delay. But they’ll have to be patient. |
| The Athens exchange will remain closed today, even though Greece’s banks are opening up to customers right now. | The Athens exchange will remain closed today, even though Greece’s banks are opening up to customers right now. |
| According to spokeswoman Alexandra Grispou, the new capital controls degree issued on Saturday “doesn’t allow us to open today.” | According to spokeswoman Alexandra Grispou, the new capital controls degree issued on Saturday “doesn’t allow us to open today.” |
| The exchange could open in a couple of days, according to Evangelos Charatsis, managing director of Beta Securities, a financial services firm. | The exchange could open in a couple of days, according to Evangelos Charatsis, managing director of Beta Securities, a financial services firm. |
| He told Bloomberg TV that some staff took holidays once capital controls were imposed three weeks ago, adding: | He told Bloomberg TV that some staff took holidays once capital controls were imposed three weeks ago, adding: |
| Others worked part time, then went to the beach. | Others worked part time, then went to the beach. |
| 7.38am BST07:38 | 7.38am BST07:38 |
| Introduction: Greek banks reopening today | Introduction: Greek banks reopening today |
| Good morning, and welcome to our rolling coverage of the Greek debt crisis. | Good morning, and welcome to our rolling coverage of the Greek debt crisis. |
| Across Greece, banks are reopening after a three-week hiatus. Customers are flocking to their local branches for the first time since Alexis Tsipras’s fateful decision to call a referendum on the country’s bailout terms. | Across Greece, banks are reopening after a three-week hiatus. Customers are flocking to their local branches for the first time since Alexis Tsipras’s fateful decision to call a referendum on the country’s bailout terms. |
| Greek banks to reopen for first time in 3 weeks. But long queues at ATM's remain as CNBC shows http://t.co/GzCWxQxQ1d pic.twitter.com/PVD8tFb3j3 | Greek banks to reopen for first time in 3 weeks. But long queues at ATM's remain as CNBC shows http://t.co/GzCWxQxQ1d pic.twitter.com/PVD8tFb3j3 |
| But the situation remains far from normal, with capital controls still in place. Customers are only allowed to take out €420 per week (a slight tweak to the €60 per day limit). | But the situation remains far from normal, with capital controls still in place. Customers are only allowed to take out €420 per week (a slight tweak to the €60 per day limit). |
| But as Associated Press explains, that’s only the start.... | But as Associated Press explains, that’s only the start.... |
| Bank customers will still not be able to cash checks, only deposit them into their accounts, and will not be able to get cash abroad with their credit or cash cards, only make purchases. | Bank customers will still not be able to cash checks, only deposit them into their accounts, and will not be able to get cash abroad with their credit or cash cards, only make purchases. |
| There are also restrictions on opening new accounts or activating dormant ones. | There are also restrictions on opening new accounts or activating dormant ones. |
| Here’s our latest news story explaining the situation: | Here’s our latest news story explaining the situation: |
| Related: Greek banks start to reopen for first time in three weeks | Related: Greek banks start to reopen for first time in three weeks |
| Today had (until recently) been inked in as the moment when Greece’s battle against bankruptcy floundered. It is is due to make a $3.5bn bond repayment to the ECB today (plus $700m in interest), which would have been impossible before last week’s bailout deal. | Today had (until recently) been inked in as the moment when Greece’s battle against bankruptcy floundered. It is is due to make a $3.5bn bond repayment to the ECB today (plus $700m in interest), which would have been impossible before last week’s bailout deal. |
| Instead, the $7bn bridge loan agreed last week should arrive just in time to repay Greece’s creditors. | Instead, the $7bn bridge loan agreed last week should arrive just in time to repay Greece’s creditors. |
| As Bloomberg explains: | As Bloomberg explains: |
| Greece has reached the deadline it couldn’t afford to miss, for a bill it can finally afford to pay. | Greece has reached the deadline it couldn’t afford to miss, for a bill it can finally afford to pay. |
| Greece’s Real Crisis Deadline Arrives With ECB Debt to Pay | Greece’s Real Crisis Deadline Arrives With ECB Debt to Pay |
| But this crisis isn’t over. | But this crisis isn’t over. |
| Negotiations over Greece’s bailout are going to take several weeks, perhaps a month. | Negotiations over Greece’s bailout are going to take several weeks, perhaps a month. |
| And Alexis Tsipras’s position remains precarious. Last Friday’s night’s reshuffle has sidelined several key dissenters, breaking the PM’s links to the far-left faction of Syriza and making an autumn election more likely. | And Alexis Tsipras’s position remains precarious. Last Friday’s night’s reshuffle has sidelined several key dissenters, breaking the PM’s links to the far-left faction of Syriza and making an autumn election more likely. |
| Related: Alexis Tsipras reshuffles cabinet to get rid of bailout dissidents | Related: Alexis Tsipras reshuffles cabinet to get rid of bailout dissidents |
| We’ll be tracking all the main events through the day.... | We’ll be tracking all the main events through the day.... |
| Updated at 7.38am BST | Updated at 7.38am BST |