Banks shut down as Greece financial crisis deepen

As capital controls come in to effect in Greece, banks in the troubled economy were flocked Monday morning by retired residents who went to collect their pensions.

This is after Greece closed its banks and imposed capital controls on Sunday to check the growing strains on its crippled financial system, bringing the prospect of being forced out of the Euro into plain sight.

This comes after bailout talks between the government and foreign lenders broke down at the weekend.

The European Central Bank then froze vital funding support to Greece’s banks leaving Athens with little choice but to shut down the system to keep the banks from collapsing.

For ordinary Greeks, cash withdrawals are now limited to an equivalent of 6,000 shillings per day and residents are only allowed to use their debit or credit cards for payments and transfers within Greece only, not abroad.

Tourists and visitors with foreign bank issued cards are permitted but the finance minister could impose restrictions on those if liquidity was at risk.

Pensions are exempt from the controls, but some of the retired Greeks who went to collect their money on Monday morning found ATMs empty.

The capital controls are likely to last for many months.