The Strategist

Greece Makes Public Transport Free

06/29/2015 - 17:42

Greek authorities have canceled fare on public transport in Athens for the week.
According to Transport Minister Christos Spirtzisa, residents will be able to ride free on the subway, buses and trolleybuses. At the same time, it is decided not to cancel the fee for electric. The decision will come into force during the day and will be applied only to the capital, as private companies make transportation in other cities.
The minister said that the abolition of tolls linked with an earlier decision to close for a week, and banks limit the issuance of funds through ATMs. The authorities believe that in such circumstances should be possible to facilitate the lives of citizens.

The decision to close the banks was made against the background of rumors about a possible default in Greece, due to the failure of another round of talks with its foreign creditors. Banks are closed in order to avoid significant losses in the event of panic among the population.

Restrictions on cash withdrawals at ATMs not concern holders of bankcards issued outside of Greece.

A sharp decline after the closure of Greek banks and the introduction of capital controls in Greece is recorded on the stock markets in Europe and Asia.

The Greek authorities have taken those measures after the European Central Bank decided not to increase the amount of emergency aid to Greek banks.

As part of the capital controls imposed by the Greek government, the Greek holders of bank cards can withdraw from an ATM not more than 60 euros (42 pounds or $ 66) on a daily basis, starting from Monday. Cash transfer abroad is prohibited, except vital and pre-agreed commercial transactions.

The situation in Greece and the closure of banks in the country is the main theme of newspapers on Monday. Greece is preparing for the referendum, and the Daily Telegraph predicts that financial markets are waiting for the most difficult period in the past four years. US Wall St Journal reports that Greece "almost certainly" will not pay the next loan tranche of IMF on Tuesday and would default.

French President Francois Hollande said that there is still time to reach an agreement with Greece. But the initiative has to come from Athens. It should be the decision of the Greek government, he said.
- Only a few hours before the final conclusion of the negotiations, particularly on the extension of the program of aid to Greece - he said. - I would like to see the negotiations continue if the Greeks and their government make such a decision.