Greek banks likely to reduce ATM limits without more funding

Greek banks will likely reduce the amount of money customers can withdraw from ATMs Thursday without a bigger infusion of cash as the financial system struggles to stay afloat while government leaders make a last-ditch effort to avoid national bankruptcy.

 

The European Central Bank is expected to discuss whether to increase the 89 billion euros in emergency loans that has kept Greece’s banking system alive. The Bank of Greece has a standing request for an additional 6 billion euros, which the ECB has so far denied.

 

If the central bank says no again, Greek banks will have little choice but to tighten the limits on customers’ cash withdrawals to prevent the system from running out of money, senior banking executives said. One high-ranking official involved in Greece’s bailout negotiations said banks have already begun pooling their money in order to continue meeting withdrawal requests.

 

Read More: Greek banks likely to reduce ATM limits without more funding – The Washington Post