Comment on Long lines in Greece as banks reopen; new proposal weighed

ATHENS, Greece (AP) — Eurozone finance ministers were set to weigh Greece's latest proposal for aid Wednesday, hours after the country's international bailout expired without a deal, cutting it off from vital financing and deepening fears over whether it will be able to remain in the eurozone. Long lines formed as 1,000 bank branches around the country were ordered by the government to reopen Wednesday to help desperate pensioners without ATM cards cash up to 120 euros ($134) from their retirement checks. The move increased fears the country could soon fall out of the euro currency bloc and Greeks rushed to pull money out of ATMs, leading the government to shutter its banks Monday and impose restrictions on banking transactions for at least a week. [...] in a surprise move late Tuesday, Deputy Prime Minister Yannis Dragasakis hinted that the government might be open to calling off the popular vote, saying it was a political decision. With its economy teetering on the brink, Greece suffered its second sovereign downgrade in as many days Tuesday when the Fitch ratings agency lowered it further into junk status, to just one notch above the level where it considers default inevitable. The agency said the breakdown of negotiations "has significantly increased the risk that Greece will not be able to honor its debt obligations in the coming months, including bonds held by the private sector." Greece's financial crisis reached a critical stage after the left-wing-led Greek government, elected in January on a promise to bring an end to the hated austerity measures that it blames for an acute economic recession, failed to agree on a package of spending cuts and reforms demanded by creditors in exchange for access to the remaining 7.2 billion euros ($8.1 billion) in rescue loans. Greece's latest offer involved a proposal to tap Europe's bailout fund — the so-called European Stability Mechanism, a pot of money set up after Greece's rescue programs to help countries in need. Commission spokesman Margaritis Schinas said the offer would also involve unspecified discussions on Athens's massive debt load of over 300 billion euros, or around 180 percent of GDP.