Greek banks shut until July 6, ATM withdrawal limit 60 euros a day

Greek banks will remain closed until July 6 -- the day after a referendum on bailout proposals -- and ATM withdrawals will be limited to 60 euros ($65) a day in the same period, according to an official decree published early Monday.

The decree on capital controls, published in the official government gazette and entitled "Bank Holiday break", lists the measures imposed on financial institutions lasting from June 28 to July 6 and was signed by President Prokopis Pavlopoulos and Prime Minister Alexis Tsipras.

It cited "the extremely urgent and unforeseen need to protect the Greek financial system and the Greek economy due to the lack of liquidity caused by the Eurogroup's decision on June 27 to refuse the extension of the loan agreement with Greece".

Banks will reopen Tuesday, July 7, a government statement said, while cash machines, many of which are dry after massive withdrawals this weekend, will "operate normally again by Monday noon at the latest". The 60-euro ATM withdrawal limit is per bank card.

Pension payments will be exempt from the bank transaction restrictions, while there will be "no problem for wages paid electronically into bank accounts", the statement said.

Internet banking transactions inside Greece will work normally, as will card payments in shops, but transfers abroad will require approval from a Ministry of Finance commission, it said.

Earlier Athens sought to reassure thousands of tourists currently staying in Greece, saying that people with a credit card issued in a foreign country will not be affected by the limits on ATM withdrawals.

The radical measures have been imposed to protect the banking system against the threat of mass panic at the prospect of a possible default by Greece, and the impact of the referendum announcement on negotiations with creditors.