Greece pursues normalcy after bailout

Greece pursues normalcy after bailout

Greece struggles as bank limitations remain and higher taxes impact normal, everyday life.

With the re-opening of Greece’s banks, the struggling country has started its long trek to achieving “normalcy” after the recent bailout package.

On Monday customers lined up outside their banks, for the first time in three weeks. Greeks will be able to deposit checks but not cash, pay bills as well as have access to safety deposit boxes and withdraw money without an ATM card.

“Capital controls and restrictions on withdrawals will remain in place but we are entering a new stage which we all hope will be one of normality,” said Louka Katseli, head of the Greek bank association.

Bankers said there may be minor disruptions, but added that they expected services to resume largely as normal.

“I don’t expect major problems, our network and the network of our competitors are ready to serve our clients,” said a senior official at Piraeus Bank, one of the big four lenders. “There might be lines because many people will want to withdraw money from their deposit boxes.”

In addition to bank limitations, the Athens stock market will remain closed until further notice, Greeks will also have to deal with a higher value-added tax, of up to 23 percent on food and public transport and a 13 percent tax on basic food items, making everyday items more expensive—from coffee to taxis.

While Prime Minister Alexis Tsipras’ acceptance of a tough package of bailout demands—roughly 86 billion euros (US $96 billion)—triggered resumption to normal life, it also led to a revolt in the Syriza party, threatening the government’s stability. Officials say new elections may be held as early as September or October.

“Things are better than the last few weeks. Thank God we didn’t end up with the drachma!” said 62-year-old pensioner Maria Papadopoulou. “I came to pay bills and my taxes today. Last week I couldn’t and all of this is very tiring for the older people like me.”

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