Greek debt crisis: Banks to stay shut, capital controls imposed

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ATHENS. KAZINFORM - Greek banks are to remain closed and capital controls will be imposed, Prime Minister Alexis Tsipras says.

Speaking after the European Central Bank (ECB) said it was not increasing emergency funding to Greek banks, Mr Tsipras said Greek deposits were safe. Greece is due to make a €1.6bn (£1.1bn) payment to the International Monetary Fund (IMF) on Tuesday - the same day that its current bailout expires, BBC News reports. Greece risks default and moving closer to a possible exit from the eurozone. Greeks have been queuing to withdraw money from cash machines over the weekend, and the Bank of Greece said it was making "huge efforts" to keep the machines stocked. Greek banks are expected to stay shut until 6 July, two days after Greece's planned referendum on the terms it had been offered by international creditors for receiving fresh bailout money. The Athens stock exchange will also be closed on Monday. Eurozone finance ministers blamed Greece for breaking off the talks, and the European Commission took the unusual step on Sunday of publishing proposals by European creditors that it said were on the table at the time. But Greece described creditors' terms as "not viable", and asked for an extension of its current deal until after the vote was completed. "[Rejection] of the Greek government's request for a short extension of the programme was an unprecedented act by European standards, questioning the right of a sovereign people to decide," Mr Tsipras on Sunday said in a televised address. "This decision led the ECB today to limit the liquidity available to Greek banks and forced the Greek central bank to suggest a bank holiday and restrictions on bank withdrawals."

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