Crisis In Greece As All Banks Shut Down

Greece was facing economic collapse on Sunday night after the government announced that its banks would be closed for more than a week ahead of the country’s potential bankruptcy on Tuesday.
The country’s stockmarket was suspended and even atm machine withdrawals across Greece were capped at €60 as banks began to run out of money.
Greece faces a debt default within 48 hours after the government made clear it will not repay a €1.5bn loan to the IMF that expires on Tuesday.

President Barack Obama and Angela Merkel, the German Chancellor, held emergency talks last night and said it was “critically important” that Greece returns to the negotiating table after negotiations on a €12 bn bail-out package collapsed at the weekend. The US Treasury Secretary suggested that the EU should consider writing off some of Greek’s crippling debts.

Manuell Valls, the French prime minister and Greece’s only defender in the negotiations, begged Alexis Tsipras, the Greek prime minister, to step back from the brink. “I cannot resign myself to Greece leaving the eurozone,” he said.
Greeks queued in their thousands at cash machines for a second day to withdraw their savings.
By evening, six out of ten ATMs were empty as workers struggled to replenish them fast enough, The Greek government last night ordered a bank holiday and imposed strict limits on how much people can withdraw in a bid to halt a full-blown bank run.
The Foreign Office urged tourists to take cash, warning that the credit card and ATM network cannot be relied upon.
The bank closure will be in place until July 7 and ATM withdrawals will be capped at €60 per day, Greek media said last night.
Closing the banks at the beginning of the tourist season, one of the last pillars of the Greek economy, will only deepen the country’s woes.


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