Greece debt crisis: Banks to remain shut all week

Greek banks arenighd too volition restnigh for the week, after the country's debt crisis took a dramatic turn.

But cash machines are due to reopen inwards the afternoon too at that place are reports of fresh queues.
Greece decided on Lord's Day tonigh banks too confine cash withdrawals after the European Central Bank resolved non to extend emergency funding.
It followed the failure on Fri of talks amongst Greek creditors on continuing amongst the bailout programme.

Greece crisis - alive coverage
A critical deadline looms on Tuesday, when Hellenic Republic is due to pay dorsum €1.6bn to the IMF - the same twenty-four hours the bailout expires. There are fears of a default too a possible croak from euro.

The French cabinet met on Mon inwards emergency session. President Francois Hollande said subsequently that a bargain was withal possible if the Greeks wanted it.

"There are a few hours earlier the negotiation is definitivelynighd, inwards item for the prolongation of the Greek assist programme."

German Chancellor Angela Merkel's spokesman said that she was "ready for farther talks" amongst the Greek Prime Minister Alexis Tsipras "if he really wants to".

Greek cash machines were shut on Monday morning

In its decree bringing inwards the banking concern restrictions, the Greek authorities cited the "extremely urgent" call for to protect the fiscal arrangement due to the lack of liquidity.
The master points are:

• Banksnighd till vi July
• Cash withdrawals express to €60 (£42; $66) a twenty-four hours for this period
• Cash automobile withdrawals amongst strange banking concern cards permitted
• Pension payments non function of majuscule controls
• Banking transactions inside Hellenic Republic allowed

The crisis came to a caput on Sabbatum after Hellenic Republic too eurozone countries failed to attain understanding on payment of the final tranche of bailout money.

Shares savage on European exchanges
Mr Tsipras too then called a surprise plebiscite for five July on the latest damage offered past Greece's creditors.

In reaction to the crisis, the London, Paris, Frankfurt too Milan stock markets savage sharply inwards early on trading on Monday, next like falls inwards Asia.

The euro lost 2% of its treasure against the the United States of America dollar. Government borrowing costs inwards Italian Republic too Spain, ii of the eurozone's weaker economies, accept besides risen.

The Athens stock telephone substitution is besidesnighd every bit function of the measures.
The decree says they were taken every bit a effect of the eurozone's conclusion "to pass upwards the extension of the loan understanding amongst Greece".


Days of turmoil

• Friday evening: Greek flush number government minister calls plebiscite on damage of novel bailout deal, asks for extension of existing bailout
• Saturday afternoon: Eurozone finance ministers pass upwards to extend existing bailout beyond Tuesday
• Saturday evening: Greek parliament backs plebiscite for five July
• Sunday afternoon: ECB says it is non increasing emergency assistance to Greece
• Sunday evening: Greek authorities says banks to livenighd for the calendar week too cash withdrawals restricted to €60

Eurozone finance ministers blamed Hellenic Republic for breaking off the talks, too the European Commission took the strange stride on Lord's Day of publishing proposals past European creditors that it said were on the tabular array at the time.

But Hellenic Republic described creditors' damage every bit "not viable", too asked for an extension of its electric stream bargain until after the vote was completed.

The electric stream ceiling for the ECB's emergency funding - Emergency Liquidity Assistance (ELA) - is €89bn (£63bn). It is idea that almost all that coin has been disbursed.

Analysis: Robert Peston, BBC economic science editor
The temporary closure of banks inwards Greece, too the introduction of majuscule controls, is really wicked word for Greece. Greek people volition accept less coin to pass too occupation organisation less to invest; thus an already weak economic scheme volition in all probability render to deep recession.
As for the bear on on the balance of the eurozone, corporate treasurers too wealthy individuals volition wake upwards on Mon wondering if their coin is prophylactic inwards the banks of other weaker eurozone economies.

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