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Greek Banks Stay Shut As Creditors Push For Plan

Greece is to extend the bank holiday for a few more days despite promises that branches would reopen on Tuesday.

Yanis Varoufakis, who quit as finance minister on Monday, had said that banks would open on Tuesday.

But the head of the Greek Bank Association has confirmed they will stay closed until at least Thursday, with a €60 (£42) daily limit on ATM withdrawals kept in place.

There was relief when the European Central Bank (ECB) confirmed on Monday evening it would be maintaining the Emergency Liquidity Assistance (ELA) Greece needs to keep its banking system afloat.

But the ECB said it would be "adjusting" the conditions it applies to the assistance - which could make it tougher for some Greek banks to qualify.

The Greek people rejected a tough new bailout deal on Sunday, with 61% snubbing demands for further austerity measures.

Creditors had wanted more spending cuts in exchange for extending the country’s multibillion-euro bailout deal until November.

British Chancellor George Osborne told MPs the Government would "do whatever necessary to protect the UK's economic security" following the vote.

Greek Prime Minister Alexis Tsipras called the result a "victory of democracy" and said the Greek people had made a "very brave choice".

But Mr Varoufakis quit soon afterwards , saying he had been "made aware" some members of the eurozone did not want him at the meetings of finance ministers.

He added: "I shall wear the creditors' loathing with pride."

Shortly after his appointment was confirmed, the motorbike-riding economist's successor Euclid Tsakalotos warned that Greece "cannot accept a non-viable deal".

Mr Tsipras met on Monday with the leaders of six of the seven parties represented in Parliament at the presidential palace.

He then spoke to German Chancellor Angela Merkel and agreed to discuss new proposals on Tuesday.

He also chatted on the phone with French President Francois Hollande and Russian President Vladimir Putin.

After meeting in Paris, Mr Hollande and Ms Merkel said the door was open for a return to debt negotiations with Greece, but they called for "serious, credible" proposals from Athens.

But Ms Merkel said the conditions for restarting talks with Greece were "not yet met".

Mr Putin told him that he supports the Greek people in their efforts to "overcome difficulties".

Dutch PM Mark Rutte was less conciliatory, warning that Greece "must decide tonight" if it wants to accept the tough reforms he claims are needed for it to remain in the eurozone

Speaking in the Commons, Mr Osborne said the Government had contacted more than 2,000 people in Greece who receive UK pensions to reassure them that their payments would not be affected by the crisis.

He said they had been given advice on opening non-Greek bank accounts and that UK businesses exposed to the economic turbulence were getting guidance.

Mr Osborne reiterated travel advice, urging holidaymakers to take enough cash to cover their trip and prescription medication, amid reports of shortages in Greece.

Mr Tsipras has promised to return to the negotiating table to push for better terms from Greece's creditors - the European Union, International Monetary Fund and European Central Bank.

The government says it believes a new bailout deal could be possible with the next 48 hours.

Mr Tsipras also stressed the referendum did not necessarily mean Athens would leave the euro - polls show most people in Greece want to stay in the currency union.

No country has ever left the 19-member eurozone.

An emergency summit of leaders and finance ministers from all eurozone countries will take place on Tuesday.