Greek pensioners swarm banks for cash as Athens defaults on IMF loan

Thousands of elderly citizens in Greece have swarmed selected branches of the country’s crisis-hit banks, which were ordered by government to reopen in order to allow them withdraw cash from their state pensions.

The chaotic scene came on Wednesday after Greece officially defaulted on its bailout loan with the International Monetary Fund (IMF) following the failure of its negotiation with the so-called troika of international creditors – the IMF, the European Central Bank (ECB) and the European Commission.

"Let them go to hell!" said one pensioner, who was waiting to get his money, AFP reported.

The country missed the Tuesday midnight deadline to repay €1.6 billion (USD 1.79 billion) it owed to the IMF. The development came following reports that Athens had made last-minute overtures to its international creditors to cancel the country’s upcoming referendum on the issue in exchange for winning an extension of the payment deadline.

Greece decided to shut down its banks for a week after talks between Athens and international creditors failed. The Greek government also imposed strict capital controls after ATMs ran out of money, but temporarily reopened almost 1,000 branches to help pensioners not having a card withdraw €120 (USD 133).

The government’s move has caused lengthy temper-fraying lines to form outside banks across Greece, enraging many retirees, who are considered as among the most vulnerable classes in Greek society in the face of lengthy economic downturn.

"I took the money out. I know that this is not enough, but that's what I could take and so I took it," said Dyonisia Zafiropoulou, a former employee of the national electricity company, DEI.

Saying that she was convinced Greece could weather the financial crisis, Zafiropoulou added, "I lived during the Occupation, I experienced hardship and I think we will overcome this moment."

According to new banking restrictions, ordinary Greek citizens can withdraw up to €60 a day for each credit or debit card. Many elderly people, however, do not have cards.

Another bank customer, a retired mariner asking not to be named, told AFP that he had no cash to buy crucial medicine for his sick wife.

"I worked for 50 years on the sea and now I am the beggar for 120 euros," he said, adding, "I took out 120 euros -- but I have no money for medication for my wife, who had an operation and is ill."

Greece received two bailout packages in 2010 and 2012 worth a total of €240 billion (USD 272 billion) from its creditors following its 2009 economic crisis, in return for implementing harsh austerity measures.

According to the terms of the bailout deal, Greece had to make the €1.6-billion payment to the IMF at the end of June.

Greece’s default will potentially set it on a path out of the euro with unpredictable repercussions for the EU's grand currency project as well as the global economy.

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