Greece Will Close Banks [for a period of 6 days] to Stem Flood of Withdrawals

Greece Will Close Banks to Stem Flood of Withdrawals, Banking Officials Say

Sunday, June 28, 2015 1:56 PM EDT

Greece will keep its banks and stock market closed on Monday and place restrictions on the withdrawal and transfer of money, banking executives said Sunday night, as Athens tries to keep its financial crisis from growing worse.

The government’s decision to close banks temporarily and impose other so-called capital controls came hours after the European Central Bank said it would not expand an emergency loan program that has been propping up Greek banks in recent weeks while the government was trying to reach a new debt deal with international creditors.

The debt negotiations broke down over the weekend after Prime Minister Alexis Tsprias said he would let the Greek people decide whether to accept the creditors’ latest offer. That referendum vote is to be held next Sunday, after the current bailout program will have expired.

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