Sunday, June 28, 2015

Greece announced indefinite closure of banks waiting for results … – Daily Management

Thousands of Greeks seek withdrawals by uncertainty about the bailout due Tuesday. Government recently decided whether to accept the proposal of creditors, according to the results of the referendum on Sunday, July 5.

( DPA ) .- Greek banks will be closed from Monday and capital controls will be imposed on Greece, today announced the Prime Minister Alexis Tsipras in a televised message to the Greek people.

Tsipras said the Greek central bank measures recommended after the European Central Bank ( ECB ) decided today to freeze its emergency lending to Greek banks.

However, the mayor did not specify for how long will be closed banks nor he explained what kind of capital controls will take effect, but according to analysts will probably have to do with limiting the amount of money that can be drawn from ATMs and limit the amount of money that can be sent abroad. It is also unclear whether the stock market will be closed tomorrow in Athens.

While the lines at bank tellers are getting longer, Tsipras asked the Greeks to be patient and assured them after a council of ministers Emergency deposits in banks are “completely safe” and said that salaries and pensions are “guaranteed”.

“In these critical times, we must remember that the only thing we have to fear is fear itself, “he added.

Greece also asked for an extension of short-term rescue beyond June 30, when due again. “Recent decisions of the Eurogroup and the ECB have only one goal: try to suppress the will of the Greek people,” the prime minister on the decision of the finance ministers of the eurozone Saturday rejected Greece’s request to extend the rescue until July.

“They will not succeed. The exact opposite will happen: the Greek people will stick with even greater tenacity, “said Greek Prime Minister

.” The dignity of the Greek people against the blackmail and injustice will send a message of hope and pride throughout Europe, “he said.

Shortly before the announcement of Tsipras, president of the board of the Bank of Piraeus, Anthimos Thomapoulos, had been brought to journalists in Athens that the Greek government had forbidden banks the country open their doors tomorrow in order to avoid a financial collapse after the ECB decided to freeze its emergency loans to Greek banks.

Banks Greeks rely for months of emergency loans, called ELA (Emergency Liquidity Assistance), which are awarded by the Greek central bank, but they need the permission of the ECB , you can stop them with a two-thirds majority. And in European bank it grows resistance to grant more credit lines emergency.

Meanwhile, according to the Greek newspaper “Kathemerini” banks will reopen as early on July 6, is ie one day after the referendum in which citizens decide on the package of reforms and austerity measures proposed by creditors.

The Managing Director of IMF Christine Lagarde told the BBC that the Greeks could vote in the referendum in favor of the proposal to the creditors, sending a message that way.

In a statement released today by the IMF , Lagarde was shown by the escalation of the crisis however disappointed but showed its willingness to continue to seek a solution. “The coming days will be very important”.

US President Barack Obama and German Chancellor Angela Merkel spoke today by telephone about the crisis in Greece and expressed their concern about the situation in the country Hellene.

The two parties considered vital to find a way to allow Greece to implement reforms in the eurozone and achieve growth, the White House said today. Experts from the two countries discussed the situation and are in contact. Merkel called Monday for the key figures of the ruling parties in Germany.

“The disappointment is very big,” said German Finance Minister Wolfgang Schäuble, who stressed however that Greece remains a member Eurozone and the EU. The German Foreign Minister, Frank-Walter Steinmeier, told the newspaper “Welt am Sonntag”. “This zigzag Greek government in recent hours and days leaves one puzzled”

The Greek government abandoned Saturday negotiations with the Eurogroup in Brussels and could be forced to declare bankruptcy after the expiry on Tuesday the current European aid program. On the same day must also return some 1,600 million euros to the International Monetary Fund.

In his statement today, President of the European Central Bank, Mario Draghi, said “continue to work closely with the Bank of Greece “.

ECB is following the situation in the financial markets” and the potential implications for monetary policy “in the eurozone, said a statement and notes the issuing bank is willing at all times to review its decision.

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