So say Greek officials talking to Reuters

Despite a loosening of restrictions on foreign transfers by businesses last Friday the cash problems at the banks are unlikely to be resolved any time soon

"The banks are in deep freeze but the economy is getting weaker," said one official, pointing to a steady rise in loans that are not being repaid.

Delays to the next round of bailout talks aren't going to help either as the longer they take the more critical the banks' condition becomes as a €420 weekly limit on cash withdrawals plays out on the economy and borrowers' ability to repay loans

Greek officials, alarmed by a downward spiral in the economy, want an urgent release of funds for their banks.

Four big banks dominate Greece. Of those, National Bank of Greece, Eurobank and Piraeus fell short in an ECB health check last year, when their restructuring plans were not taken into account. The situation is now dramatically worse.

"We want, if possible, an initial amount to be ready for the first needs of the banks," said one official at the Greek finance ministry, who spoke on condition of anonymity. "That should be about 10 billion euros".

Also on the agenda of the discussions this week, should they ever start, is the use of the European Stability Mechanism (ESM) to bail out the Greek banks but that would have an impact on bondholders and large depositors

Whatever the outcome the broad capital controls are unlikely to be lifted any time soon

Reuters has more here