Crisis for Greece as country teeters on Euro brink

EUROPEAN finance ministers banded together in their disappointment as Greece walked away from the negotiation table with Greek PM Alexis Tsipras announcing he was to call a national referendum.

With Greece on the verge of defaulting its €1.6billion payment to the IMF on Tuesday, hopes were high around the negotiating table to the point that some ministers believed they were ’98 per cent there.’  But Greece’s withdrawal from the talks has stunned Europe’s leaders, and brought a halt to any chance of deal being made before Tuesday.

On Saturday, The Eurozone finance ministers announced that they had rejected the application to extend Greece’s badly needed bailout any further than the deadline.

But while the EU finance ministers laid the blame firmly on the Greek Prime Minister’s surprise decision to call for a referendum on July 5 for scuppering any deal to pay back the IMF, the European Central Bank (ECB) is holding meetings regarding the emergency funding Greece’s banks are receiving.

In recent weeks, the ECB has been sending emergency funds on a daily basis to the Greek central bank, which then allocates it to the high-street banks.

Now, in a further step, The BBC reports that on Sunday afternoon the ECB is expected to announce that it intends to cut emergency lending to Greece’s banks.

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