European bank gives lifeline loan as Greek banks empty

NEGOTIATIONS COLLAPSE: Greek Finance Minister Yanis Varoufakis.

THE European Central Bank (ECB) has agreed additional funding of an as yet unconfirmed amount for Greek banks to prevent the collapse of the country’s financial sector. A run on Greek banks has worsened over the course of the last week, speeding up in the wake of the breakdown of talks between EU finance ministers yesterday, with more than €2 billion believed to have been withdrawn by account holders.
The assistance from the ECB will replace those funds, although it has not commented on whether Greece has been given the €2.5 billion it requested, or just a holding amount which will allow the country’s banks to function until Monday.
European leaders have convened an emergency meeting on Monday to address the crisis. Greece’s current bailout deal lasts until June 30, and the talks to renegotiate further loans have repeatedly been frustrated with both sides, Greece’s left wing government Syriza facing other EU leaders, the ECB and the International Monetary Fund (IMF), blaming the other.
Greece is expected to repay €1.6 billion to the IMF before any loans can be extended, but the Syriza has held to its election promises to put payment of wages and pensions before the country’s debt repayments.
If a deal cannot be found, Greece’s exit from the euro, and possibly the EU, is probable.

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    • Mike

      20 June 2015 • 09:37

      Greece needs to leave the EU, Brussels, Merkel and the IMF need to stop finding ways to cover up the holes in this massive bucket as Greece will never be able to repay this money, they never would have been able to from the very start and the EU knew that. Let go, change currency and then they devaluate… it will take much longer for the EU to get their money back but at least this way they will or have a better change to. So repayment will need to be done over many more years but at least the people in Greece will have it easier and there will not be as much poverty and it will give the current government time for a strategy in getting a system into place where taxes can and are actually paid. I just cannot understand why EU politics allows people to suffer in an EU country like the Greeks yet insists peoples from non EU countries are given everything they want and need for free, just doesn’t make sense.


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