Capital controls will stay in place at Greek banks for at least six months, senior officials in Athens warned yesterday, as the government fights to keep lenders afloat. Leaders of the four main banks and finance ministry officials will meet tomorrow to discuss how to save the banking system from collapse after a run on deposits.
Options under consideration include a consolidation of four main banks down to two, creation of a “bad bank” to house toxic loans, and a possible forced “bail-in” of depositors. About €15bn (£11bn) is needed to recapitalise banks, senior sources said. Tomorrow’s meeting is expected to approve new capital controls, which not only put a cap on withdrawals. FULL REPORT