Greek bank branches have reopened across the country after a three-week shutdown - but limits on withdrawals remain.

 

The limit for cash withdrawals of €420 (£290) per week is still in place.

 

But customers will be able to take out the entire amount at once instead of just €60 (£40) a day.

 

Large queues began to form at bank branches as people accessed deposit boxes, which are not subject to any capital controls.

 

An official at EFG Eurobank, one of the country's largest banks, said: "We are expecting queues in our branches in the first two or three days.

 

"Many people will ask to open their safe deposit boxes."

 

There are still restrictions in place for Greeks wishing to send money abroad.

 

German Chancellor Angela Merkel wants swift aid talks so Greece can lift the restrictions.

 

"That's not a normal life so we have to negotiate quickly," said Mrs Merkel in an interview with German broadcaster ARD.

 

An increase in VAT - from 13% to 23% - on restaurant food and public transport is also coming into force today.

 

The changes aim to restore trust inside and outside the country after eurozone leaders agreed a third bailout in exchange for reforms.

 

Greek Prime Minister Alexis Tsipras has had to combat a rebellion in his own party after agreeing to demands from European creditors.

 

He came to power on a promise of fighting austerity, but polls suggest he remains a popular figure, despite the concessions.

 

On Friday, he sacked party rebels in a reshuffle but is keen to begin talks with Europe on the bailout accord before likely elections in the autumn.

 

Despite the reopening of banks, a 25% unemployment rate means not everyone is celebrating.

 

"(It) won't change anything for me," said 31-year-old hotel worker Joanna Arvanitaki.

 

"I never used to withdraw €60 a day - €60 (£40) is what I had a week for my expenditure."

 

Some €7.16bn in bridge financing should see Athens through July.

 

European officials hope the full bailout deal, expected to be worth €86bn, will be in place by mid-August.

 

French President Francois Hollande called for the creation of a eurozone government and for people to renew faith in the European project.

 

His comments, in a French newspaper, revive an idea originally put forward by another Frenchman, former EC chief Jacques Delors.

 

Hollande proposed "a government of the eurozone (with) a specific budget as well as a parliament to ensure its democratic control".

(Sky News)