Greek banks are reopening after
being closed for three weeks because of the deadlock over the country's
debt, as the government initiates repayment of its loans to the ECB and
IMF.
Athens reached a cash-for-reforms deal aimed at avoiding a debt default and an exit from the eurozone.
But many restrictions remain and Greeks also face price rises with an increase in Value Added Tax (VAT).
Germany has said it may consider further debt concessions to Greece.
Greece
has begun making a €4.2bn ($4.6bn) payment due to the European Central
Bank (ECB) on Monday, as well as €2.05bn due to the International
Monetary Fund (IMF).
Queues at ATMs have been a feature of life in Greece for weeks,
with people waiting in line each day to withdraw a maximum of €60 (£41) a
day, a restriction imposed amid fears of a run on banks.
From Monday, the daily limit becomes a weekly one, capped at €420 (£291), meaning Greeks will not have to queue every day.
An architect told the BBC that the banks re-opening will make only a small difference to his ability to operate:
"The
key challenge is that we cannot pay our suppliers, which means that we
will eventually run out of products to sell," Vassilis Masselos told the
BBC World Service's Newsday programme.
But a block on transfers to foreign banks and a ban on cashing cheques remain in place.
Greeks will also pay more on a range of goods and services, including taxis and restaurants, with VAT rising from 13% to 23%.
The rise was among a package of reforms demanded by Greece's creditors to open talks on the proposed €86bn bailout.
Members of Prime Minister Alexis Tsipras's party rebelled against the
austerity measures demanded by creditors when it was voted through
parliament.
But the vote paved the way for Greece to receive a
bridging loan, which enables the reopening of the banks and for Athens
to repay debts to its creditors on Monday.
German row
Both
Greece and the IMF have been arguing for a restructuring of its €320bn
debt, saying its current position is "unsustainable".
German Chancellor Angela Merkel ruled out "a classic haircut" - a markdown of Greece's debts.
But
she told German television other forms of relief, such as extending
maturities or slashing interest rates, could be considered once the
details of the latest programme are worked out.
She also played
down reports of a row with her Finance Minister Wolfgang Schaeuble, who
suggested in an interview with Der Spiegel magazine that he would rather
resign than defend something he did not believe in.
"The finance
minister will, like me, conduct these negotiations and I can only say
that no-one came to me and asked to be relieved," said Ms Merkel when
asked about the suggestion.
Germany, which is the largest contributor to Greek rescue funds, has taken a tough line on Greece.
At
one point in the fraught talks over the bailout, Mr Schaeuble suggested
Greece could temporarily leave the eurozone while it stabilises its
economy.
Mr Tsipras, who has reshuffled his cabinet to replace
rebellious ministers, has another set of reforms to push through
parliament on Wednesday.
THE GLOBAL WORLD PROMOTIONS
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