The European Central Bank (ECB) raised the emergency funding to Greek banks and savers took 1,200 million euros in a single day on Friday, bankers said, but the first Minister Alexis Tsipras insisted that the country’s future in the euro is safe.
With Athens closer to a default later this month, the leftist leader told its citizens will show that the prophets of the “crisis and terror” are confused because his government will negotiate with your creditors in the European Union and the International Monetary Fund (IMF).
However, officials EU officials said the finance ministers of the Eurozone on Monday discussed how to handle a default unless Athens submit new proposals for reforms and austerity that can convince your creditors to unblock aid from August.
The president of the European Council, Donald Tusk, said no one should assume that Monday’s emergency summit find a “magic bullet”.
Banking sources told Reuters that after the huge withdrawals Friday, some 4,200 million euros had left the Greek bank accounts this week despite the efforts of the Bank of Greece to restore calm.
“It was a difficult day today compared with yesterday (Thursday), “said one of the bankers. “It is likely that Monday is also hard.”
Those responsible for economic policy of the ECB rose for the second time in a week, the limit of the Emergency Liquidity Assistance, the lifeline that keeps afloat Greek banks faced with a fall in deposits, 1,800 million euros, Greek officials said.
Officials said the ECB shall review the limit again late Monday after leaders Governments in the euro area to try to break the deadlock with Athens at its emergency meeting in Brussels.
Greece is close to skip the June 30 debt payment of 1,600 million euros to the IMF, not unless creditors resume funding.
However, Tsipras and calm exuded confidence before returning to Athens on Saturday after meeting with Russian President Vladimir Putin on the sidelines of an economic conference in St. Petersburg.
“will be shown that all those who bet on crisis scenarios and terror is wrong,” Tsipras said in a statement released by his office while he is in Russia. “There will be based on respect for EU rules and democracy that will allow Greece to return to growth in the euro solution,” he said.
Neither he nor Putin made mention of the Greek debt crisis in a joint appearance. A Kremlin statement said spoke of “trade and economic cooperation between the two sides” but gave no further details.
Germany, the largest contributor to European bailout programs, left the door open to the hopes of an agreement at the summit on Monday.
“It is not too late for that and, of course, we hope that such an agreement is possible,” said government spokesman Steffen Seibert in Berlin.
However, the German Finance Minister, Wolfgang Schaeuble, who has led a hard line against Athens, was less optimistic. “I’m not sure I can announce something sensational or again on Monday,” he told reporters.
Guarantees Central Bank.
The Bank of Greece, which warned that the country’s future in the euro and even the EU is at risk if the government fails to reach agreement with its creditors’ tried to assure its savers that the banking system remains stable.
The money has been leaving banks since Greece took the first bailout in 2010. But after a relative lull, withdrawals increased in recent months and accelerated sharply this week.
The ECB has been gradually raising the amount of emergency funds available to the Bank of Greece, but the pace has increased as the crisis deepened.
The limit was raised earlier this week by 1,100 million euros to 84,100 million.
Given the anti-austerity government’s refusal to accept the demands of the creditors of a pension reform and budget cuts, some anxious citizens emptied their accounts for fear that Athens limit withdrawals under a regime of capital controls.
The head of the Central Bank of Greece, Yannis Stournaras, tried to improve confidence.
“The governor of the Bank of Greece confirmed the stability of the banking system, which is fully insured by the joint action of the Bank of Greece and the European Central Bank,” he said in a statement.
angered Stournaras government supporters this week, to make public a report that says not to agree “mark the beginning of a painful journey that initially lead to a Greek default and finally to leave the country in the euro area and, probably, of the European Union. “
If Greece defaulted incurred later this month, will be the first member of the euro zone happens.
The executive Tsipras rejected the demands of its creditors to raise taxes and cut spending, especially on pensions, ensuring that deepen one of the worst economic depression in modern times.
So far, have not been seen outside rows banking institutions. “No rows or panic, has been quiet, with a gradual withdrawal phase,” said one banking source.
A government spokesman denied that there are plans to impose capital controls to limit cash withdrawals and transfers abroad.
Although in recent days increased fears of widespread chaos, the largest oil refinery in Greece, Hellenic Petroleum told Reuters he has a contingency plan to ensure that sufficient supplies Fuel for several months in case of an emergency.
No comments:
Post a Comment