Greece On The Brink Of Financial Collapse

The Big Picture photography competition: round 231

Greek Crisis Ignites As Banks Shut For Next 6 Days – Banks in Greece and the country’s stock exchange will be shut all week in a sign of the deepening financial crisis. The drastic move comes after people rushed to withdraw their cash amid panic ahead of the referendum on bailout terms. Under the controls, there will be a daily €60 limit on withdrawals from cash machines, which will reopen on Tuesday. The euro fell sharply against the dollar amid investor jitters of a Greek debt default and exit from the eurozone. Speaking in a televised address, Prime Minister Alexis Tsipras urged calm and insisted bank deposits were safe.

As referendum looms, many in country hoard groceries, gas The sun shone, as usual, with clouds floating in a brilliant blue sky above the Acropolis. Hotels were mostly full, shops sold T-shirts and the cafes along the narrow alleyways in the Plaka tourist district were bustling. It was a seemingly normal Sunday — except it was anything but normal. For many people in Athens, it was time to prepare for an approaching storm. A short walk from Plaka, a line of people waited to withdraw cash from an A.T.M., hours before the official announcement that banks would be closed starting on Monday. Some bank machines in central Athens had run out of money or were out of service, as screens blamed “technical difficulties.”

ATM withdrawals limited to 60 euros a day – Greece moved to check the growing strains on its crippled financial system on Sunday, closing its banks and imposing capital controls that brought the prospect of being forced out of the euro into plain sight. After bailout talks between the leftwing government and foreign lenders broke down at the weekend, the European Central Bank froze vital funding support to Greece’s banks, leaving Athens with little choice but to shut down the system to keep the banks from collapsing. Banks are expected to be closed all next week, and there will be a daily 60 euro limit on cash withdrawals from cash machines, which will reopen on Tuesday. Capital controls are likely to last for many months at least.

BRINK OF MELTDOWN – Greek banks were on the brink of meltdown last night after the shock announcement that its crisis-hit government would hold a referendum on the terms of a fresh international bailout. Long queues formed outside the country’s cashpoints after prime minister Alexis Tsipras accused the International Monetary Fund and eurozone of trying to blackmail his country – and pledged to give the Greek people the final say in a vote next weekend. Mr. Tsipras described the bailout plan as ‘humiliation’, condemned ‘unbearable’ austerity measures demanded by creditors and said he would campaign for a ‘no’ result.

World ‘defenseless’ against next financial crisis –The world will be unable to fight the next global financial crash as central banks have used up their ammunition trying to tackle the last crises, the Bank of International Settlements has warned. The so-called central bank of central banks launched a scatching critique of global monetary policy in its annual report. The BIS claimed that central banks have backed themselves into a corner after repeatedly cutting interest rates to shore up their economies. These low interest rates have in turn fuelled economic booms, encouraging excessive risk taking. Booms have then turned to busts, which policymakers have responded to with even lower rates.

World markets hit as Greek crisis intensifies –The crisis in Greece now has the full attention of investors around the world — and they don’t like what they see. Asian markets quickly entered negative territory on Monday, led by Japan’s benchmark Nikkei index, which dropped 2% in morning trading.Australia ASX All Ordinaries was down 2%, while Seoul’s KOSPI Composite lost 1.5%. The euro tumbled against other major currencies, losing 2% against the Japanese yen and 1.3% against the dollar.

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