Economy Greek mayors refuse to hand over cash to central bank

Greek mayors refuse to hand over cash to central bank

Greek Finance Minister Yanis Varoufakis
Greek Finance Minister Yanis Varoufakis

(AA) – Greek mayors are resisting a government decree that would force them to hand over their cash reserves to the central bank.

At a meeting on Tuesday of the Union of Municipalities in Athens, mayors representing towns and cities all over the country vowed to resist the decree, which is scheduled to be voted on in parliament this week.

The board of the union passed a resolution stating that they would not transfer the money, which the government desperately needs to meet debt payments to the International Monetary Fund due in May.

The mayors are also demanding a face-to-face meeting with Greek Prime Minister Alexis Tsipras to discuss the issue.

The funds would be deposited in the central bank and would earn 2.25 percent interest, according to a statement by the Ministry of Finance.

The government will run out of cash to run banks and public services in mid-May, according to credit rating agency Standard & Poor’s.