Greece imposes capital controls, banks to remain shut

(Agencies) Updated: 2015-06-29 06:43

German Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras leave after addressing a news conference following talks at the Chancellery in Berlin in this March 23, 2015 file photo. [Photo/Agencies]

Earlier Sunday, the European Central Bank decided not to increase the amount of emergency liquidity the lenders can access from the central bank - meaning they have no way to replenish fast diminishing deposits.

"It is now more than clear that this decision has no other aim than to blackmail the will of the Greek people and prevent the smooth democratic process of the referendum," Tsipras said.

"They will not succeed. These moves will have the exact opposite effect. They will make the Greek people more determined in their choice to reject the unacceptable ... proposals and ultimatums of the creditors," he said.

The referendum is set for next Sunday. But Greece's current bailout expires on Tuesday, and the 7.2 billion euros ($8 billion) remaining in it will no longer be available to Greece after that date.

Without those funds, Greece is unlikely to be able to pay a 1.6 billion-euro ($1.79 billion) International Monetary Fund debt repayment due the same day.

Tsipras said he had renewed a request for the bailout to be extended by a few days to allow for the referendum _ a request which was rebuffed during the weekend by Greece's European creditors.

Tsipras gave no details of how long banks will remain closed or what restrictions will be placed on transactions. Two financial sector officials said the banks would likely remain shut for several days, and the Athens Stock Exchange would also not open on Monday.

Some European officials called for renewed efforts by both sides.

"We don't know - none of us - the consequences of an exit from the eurozone, either on the political or economic front. We must do everything so that Greece stays in the eurozone," French Prime Minister Manuel Valls told France's i-Tele TV earlier Sunday.

"But doing everything, that means respecting Greece and democracy, but it's also about respecting European rules. So Greece needs to come back to the negotiating table," he said.