After the creditors’ refusal to extend financial assistance beyond the 30 June Greek Prime Minister Alexis Tsipras announced Sunday, 28 June the banks are closed and the introduction of capital controls, while Asian markets retreated Monday sealed by fears that Athens leaving the euro zone.
Greece , withdrawals at ATMs to be July 6 limited to 60 euros per day, according to a decree on capital controls published in the Greek Official Gazette on the night of Sunday to Monday.
The text, signed by the President of the Republic Prokopis Pavlopoulos and Alexis Tsipras, reports “of extreme urgency and unexpected need to protect the Greek financial system and the Greek economy due to the lack of liquidity caused by the Eurogroup decision of 27 June to refuse extension of the loan agreement to the Greece . “
The Athens Stock Exchange was also to remain closed at least Monday, according to a source familiar with the matter .
Tsipras called the cool
Tourists staying in Greece – tourism is a vital engine of the economy – and anyone with a credit card issued in a foreign country, will not be affected by the withdrawals control measures, said the government
Drawing the consequences. the commotion caused by its ad referendum, Alexis Tsipras appeared Sunday evening on television to include inviting people to keep his cool.
Alexis Tsipras said that the refusal of the Eurogroup (the finance ministers of the euro area) on Saturday to extend the program of assistance to his country beyond June 30, “led the ECB not to increase the liquidity of Greek banks and forced the Bank Greece to activate the temporary closures of banks and limiting bank withdrawals. “
Prime Minister, failing to mention among the causes of the turmoil his sudden announcement on the night of Friday to Saturday, a referendum, assured a firm tone that “the deposits of citizens in Greek banks are absolutely guaranteed”, as the payment of salaries and pensions.
Alexis Tsipras said he also reformulated Sunday to the EU and the ECB request from the Greece an extension of the aid program which it benefits. This time, the request was addressed to the “President of the European Council and the leaders of the 18 member states of the euro zone and the presidents of the ECB, the Commission and the European Parliament.
“I expect immediate answer to this query democratic basis,” he added in his televised address. “These are the only ones who can as quickly as possible and even tonight, overthrow the Eurogroup decision and provide an opportunity for the ECB to restore the flow of bank liquidity, “he said.
Positive Signals creditors
The establishment of a control capital had been feared all weekend, and distributors of Greek notes have been dried up.
“I tried several machines, five, six, eight, ten …” told AFP Voula, exasperated. “I’m worried, sad and angry against the government. I hate it! “.
In Greece also the concern of cash + + became more urgent. Several countries, including Germany, have encouraged their nationals who go to Greece for the holidays to get away with a lot of cash.
However, creditors Sunday sent positive signals.
First, the European Central Bank, which gave respite to the Greece maintaining intact the provision of emergency liquidity ceiling to Greek banks , when it was feared that it cuts their funding
European Commissioner Pierre Moscovici also repeated on Twitter mantra of the Commission. “the door is always open” to negotiate
His boss Jean-Claude Juncker, meanwhile, tweeted the text of the proposal of the creditors “for the information of the Greek people”, hinting hollow that if voters approve these proposals, it will be even time to listen.
Jean-Claude Juncker has to give a press conference Monday at 10:45 GMT.
IMF ready to “assist “
The French Prime Minister Manuel Valls urged Greeks to” return to the negotiating table, “and called for” do everything “to the Greece remains in the euro.
As for the IMF, he said he remained ready to “assist”.
Meanwhile, the Minister Greek Finance Yanis Varoufakis said Sunday that it was now “institutions (EU, IMF and ECB) to show their good will” while saying open to new negotiations to reach a compromise in extremis.
But the financial markets, often quick to highly volatile reactions may incorrectly take these new twists and the day Monday could be hectic.
“If you ask me if (the markets) are ready for what is happening in Greece , I promise you that no, they do not provide, in their evaluations, no risk, “said in an interview with The Stampa published on Sunday economist of the OECD (Organisation for Economic Cooperation and Development) Catherine Mann.
The announcement of capital controls has not knocked the Greeks, who expected. Yiannis Grivas, a teacher, who had taken the precaution to withdraw his salary 940 euros Friday “was not afraid of capital controls,” because “he never withdraws more than 50 euros a day …”.
(With AFP)
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