People should be calm, banks won't shut: Greek party leader

ATHENS: The Greek people should remain calm as banks will not close their doors, the leader of the government's junior coalition party said on Saturday, amid worries the country could be forced to implement capital controls.

"Citizens should not be scared - there is no blackmail," Panos Kammenos told local television. "The banks won't shut, the ATMs will (have cash). All this is exaggeration."

Kammenos, who is also the defence minister, said that a pending referendum on Greece's negotiations with its international creditors will not put its future in the European Union at risk.

Greek Prime Minister Alexis Tsipras called a referendum on austerity demands from foreign creditors on Saturday, rejecting an "ultimatum" from lenders.