Galery

1

Deposits in Greek banks will suffer great damage after Sunday's referendum, Greek bankers are warning, cited by the newspaper Kathimerini. If the country decides to remain in the euro zone, the deposits will be cut by a significant percentage. In the event that Greece returns to the drachma, its value will be so low that deposits would lose much of their value.
    Late last night, in Frankfurt, the council of the European Central Bank decided not to increase the maximum amount of money that Greek banks are receiving under the Emergency Liquidity Assistance ELA but took no decision on a further reduction in the value of government securities that are accepted as collateral against the granting of liquidity. Analysts are warning that after the non-payment of the obligation to the International Monetary Fund in June, both the European Central Bank and the European Financial Stability Facility have the legal right to take action that could have dramatic consequences for the Greek banking system.
    It is certain that Greek banks will not be able to open on Tuesday, 7 July, as originally announced by the government, unless it signs an agreement with creditors and Frankfurt starts sending aeroplanes with money to Athens. Bankers are warning that ATMs are running out of banknotes and will not operate over the weekend. "Banks will reopen either with an agreement with creditors or with a new currency," financial analyst Kostis Lympouridis told GRReporter in an interview that we published a few days ago.
    The Hellenic Deposit Guarantee Fund has 2 billion euro and bank deposits are worth 120 billion euro. If the government nationalized banks and proceeded to their recapitalization in a new currency, such as the drachma, deposits would lose at least 50 percent of their market value.