Greece also has to adopt a second set of measures on July 22.
It means Greek banks, which have been closed for almost three weeks (since June 29), could reopen in the next few days.
The European Union and the global Monetary Fund granted bailout loans worth €240 billion to Greece in two instances since 2010.
“We had a very specific choice: A deal we largely disagreed with, or a chaotic default”, he told parliament ahead of the post-midnight vote. But the large majority was provided by pro-European opposition parties and in spite of deepening dissent within Prime Minister Alexis Tsipras’ left-wing Syriza party.
German Chancellor Angela Merkel defended the debate about a possible temporary Grexit.
A new expiration date for the bank holiday would be announced later on Monday, the source told AFP.
The central bank does not want to be the one that pulls the plug on Greece and forces it out of the euro, she said.
It was unclear Thursday how quickly Greek banks might reopen, and when they might be able to resume normal banking activities.
Carsten Brzeski, analyst for financial group ING-DiBa, said that more complex steps and negotiations would follow, but that the ECB’s decision to increase emergency credit is “no game changer, yet, but at least a symbolic leap of faith”.
The European Central Bank has ruled Greek government debt and state-backed securities as unusable collateral for standard European Central Bank loans.
The government described the vote as marking a “serious division” among its lawmakers, and indicated that dissenters in Tsipras’ cabinet would be swiftly replaced in a Cabinet reshuffle.
Greece’s finance ministry said in a statement it was extending the closure of Greek banks until Sunday, prolonging a measure under capital controls brought in at the end of last month.
The ELA facility has been the life support system for the Greek economy for weeks. The crucial difference between now and 2012 is that now there is no appetite to do “whatever it takes” to save Greece, which could have large ramifications for the future of the currency bloc as we know it. Draghi said that the European Central Bank is operating right now as though Greece will remain in the euro.
Earlier today, Eurozone finance ministers agreed to give Greece a €7 billion bridging loan to keep it afloat until its €86 billion bailout can be approved.
Moody’s notes, however, that “judging by recent events and the deep economic problems and social divisions within society, it is highly uncertain whether the Greek authorities have the capacity to achieve agreed objectives and to abide by its creditor’s conditions”.
Greek parliament accepted terms for a third bailout yesterday and received two essential cash infusions.
The FTSEurofirst 300 index of top regional shares closed up 1.4 percent at 1,608.71, near a more than six-week high of 1,613.61 hit earlier. Germany’s DAX and France’s CAC-40 were up by the same rate. It remains to be seen how much trust the Greeks will place in their banks after the ECB has clearly demonstrated that it will not support the banks when the going gets rough.
Critics say that the ECB’s refusal to lift the amount of ELA above EUR89 billion has led to a significant loss of output across the Greek economy, inflicted long-term harm on its banks, and made it even more hard for the government to repay its debts. While negotiating the Greece deal, Schaeuble “changed the political climate in Europe for the worse”.