Greek banks face deep surgery including closures or mergers after a bailout but they are seen getting a brief reprieve with a capital injection before the painful overhaul begins. As part of a deal to secure new funding, Athens had to surrender much autonomy over its economy and this will include handing over more power to European institutions to decide the fate of its sick banks.

European banks are set to face another round of stress tests next year as regulators examine the ability of the region’s lenders to survive a financial crisis or severe economic downturn, the International New York Times reported. The European Banking Authority, the regulator of the European Union, said on Wednesday in a news release that it would conduct the tests beginning in the first quarter of 2016. The results are expected to be released in the third quarter of 2016.

Under threat from the nation’s creditors to move quickly or lose any chance of obtaining a desperately needed new bailout package, Greece’s Parliament approved painful new austerity measures early Thursday, virtually guaranteeing that life would get harder for millions of Greeks, the International New York Times reported.

The International Monetary Fund said what everyone knew but would not admit when it laid out in gory detail late Tuesday how Greece could be crushed by its staggering debt unless creditors agreed to lighten the load, the International New York Times reported. The I.M.F. was not saying anything different from what it and its chief, Christine Lagarde, had quietly told eurozone leaders last weekend. But by going public with its warnings, the fund was putting the world on notice: Without some relief that might enable Greece to grow its way out of debt, the I.M.F.

The International Monetary Fund has sent its strongest signal that it may walk away from Greece’s new bailout programme, arguing in a confidential analysis that the country’s debt is skyrocketing and budget surplus targets set by Athens cannot be achieved, the Financial Times reported. In the three-page memo, sent to EU authorities at the weekend and obtained by the Financial Times, the IMF said the recent turmoil in the Greek economy would lead debt to peak at close to 200 per cent of economic output over the next two years.

The Greek government repaid Samurai notes maturing on Tuesday, according to bond agent Mizuho Bank, in a first sign the nation is honouring its obligations after reaching a deal with creditors, the Irish Times reported. Masako Shiono, a spokeswoman for Mizuho, confirmed the repayment. The outstanding amount was 11.67 billion yen ($95 million). The price of the securities fell to 44.73 yen against par on July 10th, compared with 80.35 yen on June 1st, the data show.

Greece succumbed to its European creditors’ demands, agreeing to adopt punishing austerity measures within days and submit to other major concessions to rescue it from a financial meltdown and keep its place in the eurozone, The Wall Street Journal reported. The deal—hammered out early Monday after 22 hours of often-acrimonious negotiations among the currency union’s leaders and finance ministers—would provide Athens with as much as €86 billion ($96 billion) in fresh bailout loans over the next three years.

Greek banks have been dragged back from the edge of the precipice. Had marathon talks failed to produce an agreement on Monday, Greece’s four big banks would have collapsed. Instead, they will get 25 billion euros in recapitalization resources. But there’s still plenty to fret about, the International New York Times reported. Lenders are almost out of liquidity. Despite capital controls limiting withdrawals to €60 a day, the sector will run out of cash sometime this week, a person familiar with the situation estimates.

Reports of suspicious bank transactions in Italy jumped 10 per cent to a record high last year as the pervasive problems of organised crime, corruption and tax evasion were exacerbated by a three-year economic slump, the central bank said on Monday, the Irish Times reported. The financial downturn had given cash-rich mafia groups the opportunity to tighten their grip on the economy as, with banks reducing lending, the criminal networks boosted their investments in the real economy, investigators have said.

The wife of bankrupt developer Sean Dunne wants orders permitting her lawyers to cross-examine a US lawyer about his sworn statements in support of Irish proceedings challenging the validity of transfers of valuable assets by Mr Dunne to his wife the Irish Times reported. The Commercial Court will later this month hear Gayle Dunne’s application for orders permitting the cross-examination of Timothy Miltenberger, who has sworn affidavits on behalf of Richard Coan, the US trustee administering Sean Dunne’s US bankruptcy.