EUROPEAN Union creditors belatedly agreed to keep Greece’s banks open yesterday after a parliamentary vote backing austerity laws that split the ruling Syriza alliance.

The divisive Act of parliament passed by 229 votes to 64 on Wednesday night despite a revolt by 38 Syriza MPs and opposition from Syriza’s governing partner party Independent Greeks (Anel).

Its provisions include cutting pensions, raising VAT to 23 per cent, including on the previously exempt islands, and moving state assets into a €50 billion (£35bn) holding company as collateral.