Greece battles to save its banks

Greece battles to save its banks

GREECE was fighting to keep open a financial lifeline for its banks last night after eurozone finance ministers rejected pleas for a one-month bailout extension.

Panicked savers queued at cash machines, and banks shut some branches, as fears rose that the government would be forced to impose capital controls — limits on how much money can be withdrawn.

Banks have continued to trade thanks to regular injections of funds from the European Central Bank (ECB). Yesterday’s breakdown in talks means that this support is now in jeopardy.

Yanis Varoufakis, the finance minister, told The Sunday Times yesterday that the central bank was duty bound to keep the Greek banking system afloat — and warned there had been no preparations made for capital restrictions.