Greek banks to stay closed Monday | World News |Axisoflogic.com

Greeks have been queuing to take out cash

Greek banks will be closed and capital controls will be imposed, Prime Minister Alexis Tsipras says.

Speaking after the European Central Bank (ECB) said it was not increasing emergency funding to Greek banks, Mr Tsipras said Greek deposits were safe.

Greece is due to make a €1.6bn (£1.1bn) payment to the International Monetary Fund (IMF) on Tuesday - the same day that its current bailout expires.

Greece risks default and moving closer to a possible exit from the eurozone.

Greeks have been queuing to withdraw money from cash machines over the weekend.

Mr Tsipras did not give details of how long banks would stay closed, or exactly what controls on capital would be imposed.

"[Rejection] of the Greek government's request for a short extension of the [bailout] programme was an unprecedented act by European standards, questioning the right of a sovereign people to decide," Mr Tsipras said in televised address.

"This decision led the ECB today to limit the liquidity available to Greek banks and forced the Greek central bank to suggest a bank holiday and restrictions on bank withdrawals."

The announcement comes at the end of a particularly turbulent few days for Greece.

Weekend of turmoil

Friday evening: Greek prime minister calls referendum on terms of new bailout deal, asks for extension of existing bailout
Saturday afternoon: Eurozone finance ministers refuse to extend existing bailout beyond Tuesday
Saturday evening: Greek parliament backs referendum for 5 July
Sunday afternoon: ECB says it is not increasing emergency assistance to Greece

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