Monday, July 20, 2015
In the absence of external funding, capital controls will remain. Banks will allow depositors to withdraw up to 420 euros (456 dollars)/week at one go rather than in daily installments and offer limited banking services. The government has reached agreement, in principle, with its international lenders for a third package of financial assistance. Immediate financial collapse is averted, but the new reform package -- although it contains some structural reforms in such areas as pensions, the judicial system and public administration -- is more likely to reduce than remove the danger of Greece's exit from the euro. The domestic economy has re-entered recession and lenders agree that current debt levels are unsustainable.