As a result of the massive debt that Greece is currently suffering from, last week the government announced that banks all across the country would stay closed all week. This decision was the result of the European Central Bank’s refusal to increase emergency funding to the banks.
According to BBC:
“The main points are:
Banks closed till 6 July
Cash withdrawals limited to €60 (£42; $66) a day for this period
Cash machine withdrawals with foreign bank cards permitted
Pension payments not part of capital controls
Banking transactions within Greece allowed”
Greek citizens have flooded to ATMs across the nation to withdraw their cash, leaving those ATMs nearly empty. As a result of that, tourists in Greece are stranded with no money. Tourism is one of the main sources of income for Greece, but with tourists cutting their visits short, that may not be the case for long.
According to Hindustan Times, Greece is in $271 billion of debt to international creditors. Athens is set to$1.7 billion to International Monetary Fund by Tuesday, and if they fail to do so, it could very well mean the end of Greece’s use of the euro.
However, the Governor of the Bank of Greece Yannis Stournaras is optimistic. He says, “The Bank of Greece, as a member of the Eurosystem, will take all measures necessary to ensure financial stability for Greek citizens in these difficult circumstances.”
It is only with time, that we will get to know if Greece is doomed, or they have something big hidden up their sleeve!
Source: Hindustan Times