The Greek government has confirmed
that banks will be closed all week, after a decision by the European
Central Bank not to extend emergency funding.
In a decree, it cited the "extremely urgent" need to protect the financial system due to the lack of liquidity.
Cash withdrawals will be limited to €60 (£42; $66) a day for this period, the decree says.
Athens is due to make a €1.6bn payment to the IMF on Tuesday - the same day that its current bailout expires. Greece crisis - live coverage
Earlier
talks between Greece and the eurozone countries over bailout terms
ended without an agreement, and Prime Minister Alexis Tsipras then
called for a referendum on the issue to be held on 5 July.
The parliament later ratified the plan to hold a referendum.
Greece risks default and moving closer to a possible exit from the 19-member eurozone.
The euro has fallen 2% against the dollar in Monday morning trading in Asian markets.
'Not viable'
The decree was
published in the official government gazette after the Greek cabinet
took the decision at a marathon session late on Sunday.
The
document said the measures - including the shutting down of the Athens
stock exchange on Monday - were agreed as a result of the eurozone's
decision "to refuse the extension of the loan agreement with Greece".
The €60 restriction on withdrawals will not apply to holders of foreign bank cards.
Mr Tsipras also said that Greek deposits were safe.
Greeks have been queuing to withdraw money from cash machines over the weekend, leaving a number of ATMs dry.
However, the decree said that the cashpoints would "operate normally again by Monday noon at the latest".
Days of turmoil
Friday evening: Greek prime minister calls referendum on terms of new bailout deal, asks for extension of existing bailout
Saturday evening: Greek parliament backs referendum for 5 July
Sunday afternoon: ECB says it is not increasing emergency assistance to Greece
Sunday evening: Greek government says banks to be closed for the week and cash withdrawals restricted to €60
Eurozone
finance ministers blamed Greece for breaking off the talks, and the
European Commission took the unusual step on Sunday of publishing proposals by European creditors that it said were on the table at the time.
But Greece described creditors' terms as "not viable", and asked for
an extension of its current deal until after the vote was completed.
"[Rejection]
of the Greek government's request for a short extension of the
programme was an unprecedented act by European standards, questioning
the right of a sovereign people to decide," Mr Tsipras on Sunday said in
a televised address.
He also said he had sent a new request for
an extension to the bailout. "I am awaiting their immediate response to a
fundamental request of democracy," he added.
Analysis: Robert Peston, BBC economics editor
The
temporary closure of banks in Greece, and the introduction of capital
controls, is very bad news for Greece. Greek people will have less money
to spend and business less to invest; so an already weak economy will
probably return to deep recession.
As for the impact on the rest
of the eurozone, corporate treasurers and wealthy individuals will wake
up on Monday wondering if their money is safe in the banks of other
weaker eurozone economies. Greece's bank holiday from hell
The current ceiling for the ECB's emergency funding - Emergency
Liquidity Assistance (ELA) - is €89bn (£63bn). It is thought that
virtually all that money has been disbursed.
The ECB was prepared
to risk restricting ELA because the failure of the bailout talks cast
new doubt on the viability of Greek banks - some of their assets depend
on the government being able to meet its financial commitments, the BBC
economics correspondent Andrew Walker reports.
He adds that it is
a fundamental principle of central banking that while you do lend to
banks that are temporary difficulty, you only do so if they are solvent.
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