The sudden decision by the Syriza government to announce a referendum on the creditors proposal has alarmed many Athenians who have formed long queues at ATMs.

Greek banks will shut down from Monday, June 29, to Monday, July 6 inclusive, the government said following a Cabinet meeting that ran into early Monday, following the breakdown of talks between Greece and its creditors.

Means of transport in Athens will be free from June 29 to July 6, Alternate Minister for Transport Christos Spirtzis said on Monday.

In a televised address on Sunday night, Greece's Prime Minister Alexis Tsipras said that the Eurogroup's decision to not extend Greece's programme and the subsequent ELA cap imposed by the European Central Bank (ECB) had forced the Bank of Greece to recommend capital controls and a bank holiday.