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Greek Banks Close for a Week Before Crucial Debt Repayment

Uncertainty prevails in Greece as the country's banks today closed for a week before a $1.8 billion debt repayment is due and Greeks are only allowed to withdraw $66 a day.
Imagen por Petros Giannakouris/AP

Greek banks have closed today until July 6 in an effort to protect the country's fragile financial system, heightening fears that Greece is lurching towards an exit of the eurozone.

Under the restrictive measures, Greeks will also only be able to withdraw 60 euros ($66) per day per person. There is also a complete ban on transfers of money abroad, creating that the country's economy will suffer a large blow due to restrictions on investment and spending.

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The move comes just a day ahead of Greece's Tuesday deadline to repay the International Monetary Fund (IMF) $1.8 billion — a payment which some have predicted the country will miss.

Related: Panicked Greeks Drain Cash from ATMs As Moment of Truth Nears in Debt Crisis 

Speaking in a televised address on Sunday night, Greek Prime Minister Alexis Tsipras announced the closure of banks and restricted ATM access. This measure follows the European Central Bank's (ECB) decision not to extend emergency funding to a cash-strapped Greece. Monday saw a downward tumble in markets across Europe as a result of the financial strain in Greece.

In a scathing speech which was broadcast on national TV, Tsipras laid the blame on the Eurogroup, a meeting of the eurozone finance ministers, and ECB claiming: '"It is clear that the objective of the ECB and Eurogroup's decision is to impose blackmail on the will of the Greek people."

He added: "The decision not to prolong financial aid to Greece is offensive, and it's a disgrace for Europe in general."

A week of talks on how to resolve the country's debt crisis among Greece and other eurozone members were bought a halt on Saturday after Greece announced that it wished to hold a referendum on Europe's bailout program, which is set to take place on July 5.

Speaking to the BBC's Radio 4 Today program, British Prime Minister David Cameron voiced his opinion that a 'no' vote in the referendum could spell the end of Greece's Euro membership.

Related: How Greece Could Change the Future of Europe

"If they vote no, I find it hard to see how that is consistent with staying in the Euro," Cameron told listeners on Monday morning.

Despite the latest turn of events in Greece, the European Commissioner for Economic and Financial Affairs, Pierre Moscovici, remained hopeful, tweeting: 'Greece: The Eu Commissions door is always open.'

— Pierre Moscovici (@pierremoscovici)June 29, 2015