The International Monetary Fund
(IMF) has confirmed that Greece has
cleared overdue debt repayments of
€2.05bn (£1.4bn) and is no longer in
arrears.
The repayments, and another for €4.2bn
to the European Central Bank (ECB) due
on Monday, came after the EU made
Greece a short-term loan of €7bn.
Cash-strapped Greece missed one
repayment to the IMF in June and another
earlier this month.
Earlier on Monday, Greek banks reopened
after being closed for three weeks.
However, many restrictions remain and
Greeks are facing price rises with an
increase in Value Added Tax (VAT).
Analysis by Robert Peston, BBC
economics editor
Just because the doors of Greek banks are
open today, don't be fooled into thinking
they and the Greek economy are anywhere
near back to recovery.
There are still major restrictions on the
ability of their customers to obtain their
cash or move it around.
The symbolic importance of the European
Central Bank turning on the emergency
lending tap again was important, but it
has only been turned on a fraction.
It has given enough additional Emergency
Liquidity Assistance - €900m - to keep
the banks alive in a technical sense.
There is no possibility of them thriving for
months and even possibly years.
IMF spokesman Gerry Rice confirmed in a
statement that Greece had repaid the
totality of its arrears.
"As we have said, the fund stands ready to
continue assisting Greece in its efforts to
return to financial stability and growth,"
he said.
Greece missed its first repayment to the
IMF on 30 June and another on 13 July
during deadlock over negotiations for a
third bailout.
The crisis brought Greece to the brink of
economic collapse and an exit from the
euro.
The government has since reached a cash-
for-reforms deal with its creditors and
negotiations are due to begin on the
proposed €86bn rescue package.
For the past three weeks, Greeks have
been waiting in line at cash machines to
withdraw a maximum of €60 (£41) a day,
a restriction imposed amid fear of a run
on the banks.
From Monday, the daily limit becomes a
weekly one capped at €420 (£291),
meaning Greeks will not have to queue
every day.
However, a block on transfers to foreign
banks and a ban on cashing cheques
remain in place.
VAT is rising from 13% to 23% meaning
Greeks will pay more on a range of goods
and services, including taxis and
restaurants.
The rise was among a package of reforms
demanded by Greece's creditors.
Dimitris Chronis, an Athens kebab shop
owner, said the new taxes were bad news
for his business.
"I can't put up my prices because I'll have
no customers at all," he said.
"We used to deliver to offices nearby but
most of them have closed. People would
order a lot and buy food for their
colleagues on special occasions. That era
is over."
Prime Minister Alexis Tsipras faced a
rebellion from within his left-wing Syriza
party over the tough austerity measures
being demanded by other eurozone
leaders, who are among Greece's
creditors.
But last week's vote in the Greek
parliament paved the way for Greece to
receive the €7bn bridging loan that
enabled the reopening of the banks.
Mr Tsipras has since replaced his rebel
ministers but analysts say his government
has been weakened and fresh elections
may be held in September or October.
The Greek parliament is due to hold a
second vote on Wednesday on measures
including justice and banking reforms.
The government is again likely to scrape
through, supported by opposition parties.
Representatives from Greece's creditors -
known as the Troika - are due to arrive in
the country soon and talks on the new
bailout are expected to last about a
month.
The tough negotiations over Greece have
also revealed divisions within the
eurozone about the future of the bloc.
Germany, which is the largest contributor
to Greek rescue funds, has taken a tough
line on Greece, while other states, such as
France, have appeared more conciliatory.
On Monday, French President
Francois Hollande put forward his
ideas for a new parliament for the
eurozone countries and a shared budget.
The eurozone is currently managed by the
Eurogroup, made up of the finance
ministers of each nation.
(IMF) has confirmed that Greece has
cleared overdue debt repayments of
€2.05bn (£1.4bn) and is no longer in
arrears.
The repayments, and another for €4.2bn
to the European Central Bank (ECB) due
on Monday, came after the EU made
Greece a short-term loan of €7bn.
Cash-strapped Greece missed one
repayment to the IMF in June and another
earlier this month.
Earlier on Monday, Greek banks reopened
after being closed for three weeks.
However, many restrictions remain and
Greeks are facing price rises with an
increase in Value Added Tax (VAT).
Analysis by Robert Peston, BBC
economics editor
Just because the doors of Greek banks are
open today, don't be fooled into thinking
they and the Greek economy are anywhere
near back to recovery.
There are still major restrictions on the
ability of their customers to obtain their
cash or move it around.
The symbolic importance of the European
Central Bank turning on the emergency
lending tap again was important, but it
has only been turned on a fraction.
It has given enough additional Emergency
Liquidity Assistance - €900m - to keep
the banks alive in a technical sense.
There is no possibility of them thriving for
months and even possibly years.
IMF spokesman Gerry Rice confirmed in a
statement that Greece had repaid the
totality of its arrears.
"As we have said, the fund stands ready to
continue assisting Greece in its efforts to
return to financial stability and growth,"
he said.
Greece missed its first repayment to the
IMF on 30 June and another on 13 July
during deadlock over negotiations for a
third bailout.
The crisis brought Greece to the brink of
economic collapse and an exit from the
euro.
The government has since reached a cash-
for-reforms deal with its creditors and
negotiations are due to begin on the
proposed €86bn rescue package.
For the past three weeks, Greeks have
been waiting in line at cash machines to
withdraw a maximum of €60 (£41) a day,
a restriction imposed amid fear of a run
on the banks.
From Monday, the daily limit becomes a
weekly one capped at €420 (£291),
meaning Greeks will not have to queue
every day.
However, a block on transfers to foreign
banks and a ban on cashing cheques
remain in place.
VAT is rising from 13% to 23% meaning
Greeks will pay more on a range of goods
and services, including taxis and
restaurants.
The rise was among a package of reforms
demanded by Greece's creditors.
Dimitris Chronis, an Athens kebab shop
owner, said the new taxes were bad news
for his business.
"I can't put up my prices because I'll have
no customers at all," he said.
"We used to deliver to offices nearby but
most of them have closed. People would
order a lot and buy food for their
colleagues on special occasions. That era
is over."
Prime Minister Alexis Tsipras faced a
rebellion from within his left-wing Syriza
party over the tough austerity measures
being demanded by other eurozone
leaders, who are among Greece's
creditors.
But last week's vote in the Greek
parliament paved the way for Greece to
receive the €7bn bridging loan that
enabled the reopening of the banks.
Mr Tsipras has since replaced his rebel
ministers but analysts say his government
has been weakened and fresh elections
may be held in September or October.
The Greek parliament is due to hold a
second vote on Wednesday on measures
including justice and banking reforms.
The government is again likely to scrape
through, supported by opposition parties.
Representatives from Greece's creditors -
known as the Troika - are due to arrive in
the country soon and talks on the new
bailout are expected to last about a
month.
The tough negotiations over Greece have
also revealed divisions within the
eurozone about the future of the bloc.
Germany, which is the largest contributor
to Greek rescue funds, has taken a tough
line on Greece, while other states, such as
France, have appeared more conciliatory.
On Monday, French President
Francois Hollande put forward his
ideas for a new parliament for the
eurozone countries and a shared budget.
The eurozone is currently managed by the
Eurogroup, made up of the finance
ministers of each nation.
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