News

Government-decreed bank closure results in run on Greek ATMs

After their government ordered the closure of troubled banks and limited ATM cash withdrawals to 60 euros, panicked Greek citizens mobbed the nation's ATMs.

June 30, 2015

As the Greek government inched closer to a eurozone exit and decreed a weeklong "bank holiday" for financial institutions teetering on the edge of collapse, desperate citizens queued up at ATMs hoping to get cash.

Media outlets reported mind-boggling lines at ATMs that were emptied faster than they could be restocked, despite austere withdrawal limits. A Reuters report said that ATMs would reopen Tuesday morning, and that capital controls might continue for months.

ATM cardholders were restricted to cash transactions of no more than 60 euros ($67) per day — assuming even that much could be had from rapidly depleted cash machines.

The limit applies to all Greek-issued bankcards, even if they are used outside of Greece.

Other points in the government decree:

• The period from June 28 until July 6 is declared a bank holiday. This period may be shortened or extended by decision of the minister of finance.
• cards issued abroad are currently not subject to ATM withdrawal limits — also subject to change by the minister of finance.
• New prepaid cards cannot be issued.
• During the bank holiday no other banking transaction can be performed.

The financial crisis in Greece has resulted in an increase in the value of bitcoin — echoing the effect of the Cyprus bank shutdown in early 2013. On Monday, the euro slipped two cents against the U.S. dollar, and the Dow Jones Industrial Average shed 350 points.