Greek Banks Have Enough Cash to Last Until Monday

ATHENS—Greek banks have enough liquidity to get through to at least Monday, the head of the Hellenic Bank Association Louka Katseli said Thursday.

Greece shut down its banking system late last month to prevent them from collapse and will keep lenders closed until Monday as bailout talks with the country's creditors continue. Greek authorities have imposed a daily withdrawal limit of €60 a day from cash machines, to prevent the banks from running out of money.

"The Bank of Greece, which sees the broader picture with liquidity, gave us the green light last night to keep these outflows until Monday night," Ms. Katseli told Greek television station Mega. Ms. Katseli is also chairwoman of National Bank of Greece, the country's biggest lender.

"There is liquidity to cover the system until July 13," she said.

Ms. Katseli also played down concerns that Greek depositors may lose some of their money in a so-called haircut, should the banks require capital.

"At the moment there is no issue of a haircut on the table," she said.

"The sooner the banking system starts operating normally, the smaller the chance of any type of haircut. The issue of a haircut is related to the solvency of the banks," she added.

Greek banks are under pressure because depositors have been withdrawing funds amid concerns about the country's financial health and the lenders can't borrow from international markets.

As such, the banks have been reliant on the European Central Bank's emergency lending program for funding. However, the ECB decided on June 28 to freeze such funds, which prompted the shutdown of the banks.

ECB governing council member Jens Weidmann on Thursday said the central bank should continue to freeze emergency loans to Greece and capital controls should stay in place until the embattled country can reach a deal with its international creditors.

Mr. Weidmann's remarks come a day after Greece requested a new three-year bailout from its eurozone creditors and pledged some economic overhauls.

Write to Stelios Bouras at [e-mail]

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