European Central Bank has decided not to extend emergency funding to Greece. This resulted in Greek government introducing capital controls and temporarily closing banks all week.
Decree to protect the Greek financial system :
- Cash withdrawals will be limited to €60 (£42; $66) a day for this period
- The €60 restriction on withdrawals will not apply to holders of foreign bank cards
- Overseas transfers of cash prohibited, except for vital, pre-approved commercial transactions
- Cashpoints would operate normally again by Monday noon at the latest
- Shutting down of the Athens stock exchange on Monday
Its reported that the introduction of capital controls coupled with temporary closure of banks is not good for Greek economy. With less money to spend and invest an already weak Greek economy will probably return to deep recession.