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ATHENS — Greek banks reopened yesterday after a three-week shutdown imposed by the government to avert a crash in the banking system over the country’s debt crisis. Capital controls in force since June 29 remain in place, although a daily cash withdrawal limit of €60 has now been relaxed. Louka Katseli, the head of Greece’s bank association, said Greeks would now be able to withdraw a maximum of €300 at one go until Friday, when a new weekly limit of €420 would come into force.

She also urged Greeks to bring their savings back to the banks.

“If we take out the money from our safes and our houses — where, in any case, it isn’t safe — and we deposit it in the banks, we’ll reinforce liquidity,” she told the Mega TV channel.

About €40bn had been withdrawn from Greek banks since December, she said, seriously damaging their ability to function normally.

But for two customers waiting outside a branch of Alphabank in central Athens, there were more immediate concerns.

Maria had come to settle an electricity bill she had been unable to pay during the bank closure, while Grigoris, a pensioner, was seeking to withdraw the new maximum cash allowance for the week.

He was disappointed that the new €420 limit would not come into place until the weekend.

“I’ve been told I’ll have to wait until Friday to take out that sum,” he said.

Greeks will also now be able to start using their credit cards for foreign purchases again.

Some exceptions to the capital controls have also been introduced, including a move to allow bank transfers of up to €5,000 a quarter to young Greeks studying abroad, while Greeks receiving medical care in other countries will be able to take out €2,000 a day.

But for most Greeks, the capital controls remain in place: they cannot transfer money abroad, take out large sums or open new bank accounts.

The measures have cost the Greek economy about €3bn, according to the centre-right Kathimerini newspaper, not least due to lost income from the country’s crucial tourism sector. – AFP