With Greek contagion already spilling over to Italy, China, and now even Puerto Rico, LIVE UPDATES on the rapidly evolving Greek Debt Crisis are below:
*Breaking: Greece WILL NOT Repay €1.6 Billion IMF loan due Tuesday, Reuters is reporting!
Originally Posted at RT.com:
Greece and its lenders have been gridlocked in talks over its €240-billion debt for about six months. Fears of Greece defaulting are causing a run on the banks, with people withdrawing record amounts of deposits. Latest developments:
Monday, June 29
Greek banks will be shut until July 6 and a €60 limit will remain on ATM withdrawals, the government announced on Monday. It added that foreign tourists aren’t subject to the restrictions.
Greece will not repay the 1.6-billion euro loan to the IMF due on Tuesday, Reuters reported, citing a source in the Greek government.
Germany remains open to talks with Greece and will do so even after the referendum, said Merkel.
The German parliament will debate the Greece debt crisis on Wednesday, said Chancellor Angela Merkel.
The referendum, scheduled for July 5, is a legitimate way for the people of Greece to express their point of view, said President of the European Parliament Martin Schulz.
Greece made a €50,000 deposit to the European Financial Stability Facility (EFSF) on Monday, according to German business paper Handelsblatt. The EFSF confirmed the receipt of the full payment from Athens on time. The fund could have said Greece was in default if it hadn’t met the deadline.
Though there is a lot of noise concerning the Greek crisis and the Greek economy is likely going to collapse this week, three months from now no one will remember Greece going bankrupt, financial commentator Jim Rogers told RT.
German Chancellor Angela Merkel is giving a news conference on the Greek crisis in Berlin. She’s criticized Greek Prime Minister Alexis Tsipras, saying his policy is threatening the whole eurozone.
Greek depositors have withdrawn nearly €8 billion from their accounts in local banks in the last two weeks alone, according to the Financial Times.
The euro is more than just a currency; it is a reflection of the mutual confidence in the eurozone, according to German Chancellor Angela Merkel. “If we lose the ability to find a compromise, we will lose Europe,” she said.
The lenders are not asking Greeks for wage and pension cuts, and have reduced their demands on Greece by €12 billion, said Juncker.
Negotiations with Greece were cut short at the worst moment, as an agreement could open new credit lines to Athens, said Juncker.
The European Commission is not going to make new proposals to Greece to settle its debt problems, said Juncker.
A Greek exit from the eurozone will never be a solution to the problem, said European Commission President Jean-Claude Juncker.
PM Tsipras has written to all eurozone heads of government asking them to extend the Greek bailout, according the Financial Times.
The FT acquired a copy of the note he wrote to the Prime Minister of Luxembourg Xavier Bettel.
Russia is concerned about possible negative consequences for the entire area of the EU due to the financial crisis in Greece, Russian presidential spokesman Dmitry Peskov told reporters on Monday.
Municipal transport in Athens will be free until the Greek banks start working, according to the Ministry of Transport.
Greece quitting the eurozone is out of question at the moment, the Finnish Finance Minister Alexander Stubb told reporters on Monday. The Europeans continue to do everything possible to keep the country within the group.
Germany will respect the results of the Greek referendum on the creditors’ proposals said Germany’s State Secretary Steffen Seibert in Berlin.
“This is a legitimate decision by the Greek government. Of course, we will respect the result”, he said.
Key global indices have nosedived at fears Greece will again miss its Tuesday deadline when its €1.6-billion debt to the IMF is due for payment. Germany’s DAX has suffered the most, falling 4.17 percent this morning. In Asia, where trading finished by the time the Shanghai Composite was published showed the worst result, closing at 3.34 percent lower.
The euro recovered from its early lows against other major currencies on Monday. By 08:25 GMT the euro was trading at $1.1082, still down 0.7 percent on the day, but well clear of a four-week low of $1.0953 in Asian trading.
French President Francois Hollande and German Chancellor Angela Merkel will hold emergency meetings on Monday with key ministers and party leaders over the crisis in Greece. Hollande will convene a “restricted cabinet” meeting at the Elysee Palace at 07:00 GMT. Merkel will meet the heads of the German parliamentary groups and parties in Berlin at 11:30 GMT.
EU Commission head Jean-Claude Juncker has also scheduled a press conference in Brussels at 10:45 GMT to discuss the Greek issue. The meetings come ahead of Greece’s €1.6 billion IMF payment deadline on June 30.
Sunday, June 28
The Macedonian Central Bank has ordered all Macedonian banks to withdraw all deposits and loans from banks located in Greece, as well as from the branches of Greek banks located around the world.
The Greek Financial Stability Council has recommended a daily cash withdrawal limit of €60 from Tuesday, while ATMs will be closed on Monday, Reuters reports. Foreign bank card holders will be allowed to withdraw money in accordance with the limit set by their banks.
Greece’s governing Syriza party has issued an appeal for Greeks to attend a mass anti-austerity demonstration in Syntagma Square on Monday night, calling on the nation to stop “the abolishment of democracy” and “send a strong message of pride, hope and dignity to Greece and Europe.”
Antonis Samaras, the leader of Greece’s largest opposition party, urged Prime Minister Alexis Tsipras to revoke the referendum and call for a national unity government instead. “Mr. Tsipras must continue the negotiations” and if he cannot he “should attempt a big national consensus,” Samaras said, meaning a unity government, as reported by Reuters.
The Greek financial stability council has recommended keeping the country’s banks closed for the next 6 working days, Reuters has reported.
Up to 300 protesters from left-wing parties and unions have gathered in Paris to show their solidarity with Greece.
Hellenic Petroleum, Greece’s biggest oil refiner, issued a statement on Sunday amidst growing fears of fuel disruptions and chaos in Greece, as reported by Reuters. The company said it had enough reserves to meet market demand for many months and that its refineries were operating normally.
Several hundred anti-austerity protesters rallied near the Greek parliament after Prime Minister Alexis Tsipras announced bank holidays and capital controls in his TV address on Sunday. The demonstration began in front of the European Commission offices in Athens, with protesters chanting slogans “Drachma better than submission,” and “We don’t owe, we won’t sell, we won’t pay.”
In a TV address to the nation on Sunday, Greek Prime Minister Alexis Tsipras announced a bank holiday and capital controls in Greece, blaming other EU countries and ECB for “forcing Greece’s hand.” He went on to call the decision to reject Athens’ request for a short-term bailout extension “an unprecedented act by European standards” that “questions the right of a sovereign people to decide.”He gave no details on how long the measures would remain in force.
US president Barack Obama and German Chancellor Angela Merkel discussed the Greek crisis on Sunday, agreeing that it is “critically important” to return Greece to a path that allows it to continue reforms while maintaining economic growth within the euro, Reuters has reported with a reference to the White House.
Anthimos Thomopoulos, the CEO of one of Greece’s largest banks, the Piraeus Bank, said Greek banks would not open on Monday, as reported by Reuters. The Athens Stock exchange will also reportedly be closed on Monday.
Greek Prime Minister Alexis Tsipras has called an emergency meeting of his cabinet that will take place at 8pm (17:00 GMT) on Sunday, Reuters reports, without revealing any further details.
The IMF boss Christine Lagarde said in an official statement on Sunday that she was“disappointed” with the “inconclusive outcome of recent discussions on Greece in Brussels.” She also underscored her commitment to “the balanced approach” to the Greek crisis, which combined“appropriate structural and fiscal reforms” in Greece “supported by appropriate financing.” She added the IMF would “pursue that approach with the Greek authorities and other European partners.”
Greek President Prokopis Pavlopoulos met the leader of the main opposition conservative party and former Prime Minister Antonis Samaras, warning that Greece should stay in the euro, Reuters reports. “The course of the country in Europe and in the eurozone must be undisturbed,” he said, expressing confidence that the Greeks would display “greater maturity and resolve” during the forthcoming referendum.
Antonis Samaras said the aim of his party was “to defend the position of Greece in the heart of Europe,”which at the moment is “in immediate danger.”
Greek Finance Minister Yanis Varoufakis alluded in an interview to the BBC that Greece might not pay the €1.6 billion to the IMF on Tuesday. He suggested the ECB should pay the Greek debt to the IMF out of profits from the 2014 Greek bonds. He called it “a very sensible transfer.” He explained that as Greece “was owed money by one part of the troika and… owed money to another part of the troika,” it would be better if they “sort [it] themselves out.”
The Greek Finance Ministry made a formal denial of the BBC radio statement that their government planned any capital controls impositions, saying Finance Minister Yanis Varoufakis “had never spoken of the government imposing capital controls.”
Greek Finance Minister Yanis Varoufakis told BBC radio the Greek government would look into options on Sunday night of imposing capital controls and closing the country’s banks on Monday. However, he emphasized the government doesn’t like the idea of capital controls, as such a move would be “incompatible with the concept of a monetary union.” He also criticized the creditors once again saying that they hadn’t met Greek requests “even quarter [of the] way.”