Bank clean-up deal may delay lifting of Greek cash controls
Athens wants a quick injection of funds but Germany wants big depositors and bondholders to take a loss
Frankfurt
GREEK banks are set to keep broad cash controls in place for months, until fresh money arrives from Europe and with it a sweeping restructuring, officials believe.
Rehabilitating the country's banks poses a difficult question. Should the eurozone take a stake in the lenders, first requiring bondholders and even big depositors to shoulder a loss, or should the bill for fixing the banks instead be added to Greece's debt mountain? Answering this could hold up agreement on a third bailout deal for Greece that negotiators want to conclude within weeks.
The longer it takes, the more critical the banks' condition becomes as a 420 euro (S$632) weekly limit on cash withdrawals chokes the economy and borrowers' ability to repay loans. "The ba…
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