Greek banks face months-long freeze as troika makes return to Athens

Greek banks are set to keep broad cash controls in place for months, until fresh money arrives from Europe and with it a sweeping restructuring, officials believe.

Rehabilitating the country’s banks poses a difficult question. Should the eurozone take a stake in the lenders, first requiring bondholders and even big depositors to shoulder a loss, or should the bill for fixing the banks be added to Greece’s debt mountain?

Answering this could hold up agreement on a third bailout deal that negotiators want to conclude within weeks. The longer it takes, the more critical the banks’ condition becomes as a €420 weekly limit on withdrawals chokes the economy and borrowers’ ability to repay loans.