Greek bank withdrawals surge

Greek bank withdrawals surge

People are pulling their money out of Greek banks as talks between Greece and its international creditors fail to clinch a bailout deal.

Senior banking sources have told Reuters that savers pulled out about 2 billion euros ($A2.9 billion) between Monday and Wednesday. This was double the amount that the European Central Bank granted Greek banks in extra emergency liquidity assistance (ELA) for the entire week.

Bank customers are pulling their money out because they’re worried that their bank accounts could be frozen if Greece crashes out of the euro.

If the withdrawals continue to exceed the ELA, Greece will be forced to impose capital controls, as Cyprus did in 2013. This would ration cash withdrawals to stop money pouring out of the country.

The Eurozone’s top official, Jeroen Dijsselbloem, says bailout talks with Greece have yielded very little so far and no agreement is in sight yet. According to Dijsselbloem, Greek Finance Minister Yanis Varoufakis presented few measures that were credible when he met creditors on Thursday.

Greece is in talks to get more loans from its creditors but Dijsselbloem says it’s now up to Athens to submit new proposals over the next few days

Business First is a peer-to-peer magazine: written by CEOs and other high level executives, with interviews with some of the country’s best leaders.

Leave a Reply

Your email address will not be published. Required fields are marked *