A public referendum on the bailout conditions that Greece's creditors imposed on Greece is being called by Alexis Tsipras Greek PM after an extension for the $1.7bn loan has been refused. This decision by Alexis Tsipras makes it seem more likely that Greece will exit the Eurozone in the near future. Greece has set the referendum for the 5th July this may be too late to make a difference as the next repayment date for Greece's loan to the IMF is Tuesday 30th June.
In recent days many Greeks have been rushing to get their savings out of banks and ATM's across the country in fear of a banking collapse. The ECB had previously been considering whether to continue with emergency liquidity to the Greek banks, however, today the ECB has announced it will maintain the current level of emergency liquidity without any extra support. This might hurt Greek banks who need extra money after many Greek citizens withdrew their money from the banks.
The full statement by the ECB is as followed:
"The Governing Council of the European Central Bank today
welcomed the commitment by ministers from euro area Member States to take all
necessary measures to further improve the resilience of euro area economies and
to stand ready to take decisive steps to strengthen Economic and Monetary
Union.
Following the decision by the Greek authorities to hold a
referendum and the non-prolongation of the EU adjustment programme for Greece,
the Governing Council declared it will work closely with the Bank of Greece to
maintain financial stability.
Given the current circumstances, the Governing Council
decided to maintain the ceiling to the provision of emergency liquidity
assistance (ELA) to Greek banks at the level decided on Friday (26 June 2015).
The Governing Council stands ready to reconsider its
decision."
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Labels: Alexis Tsipras, Bank of Greece, ECB, Greece, Grexident, Grexit, IMF
