programme”.
With the Athens stock exchange closed Monday, other global markets were expected to follow Asia´s lead in what is set to be a highly volatile day of trade as investors return to their desks to find Greece hurtling towards default.
“We have had a slow bank jog in Greece and most thought that there would be an agreement eventually, at the last minute. That is no longer true,” said Emma Lawson, a senior currency strategist at National Australia Bank. The Frankfurt-based ECB´s governing council earlier Sunday held a crisis telephone conference and pledged to maintain emergency liquidity assistance — keeping open its life support for Greek banks and, by extension, the Greek state.
But it pledged no extra cash for banks.
The move further raised the stakes in Greece´s festering debt crisis after five months of tough bailout talks culminated on Friday night with Tsipras´s shock call for a referendum on creditors´ latest cash-for-reforms offer.
Unless creditors heed Tsipras´s renewed request for a bailout extension, Greece´s rescue plan will formally expire on Tuesday. This will almost certainly mean Greece will default on more than 1.5 billion euros ($1.7 billion) due to the IMF that same day.
Greek Finance Minister Yanis Varoufakis said there was still time for a compromise, urging creditors to show some “goodwill” and come up with an improved proposal ahead of the plebiscite. “We remain open to new proposals by the (creditor) institutions,” he told the German daily Bild. The weekend´s rapid-fire events in the Greek saga set off a flurry of diplomatic activity for Monday.
In a tweet, an EU spokesman said European Commission head Jean-Claude Juncker would hold a press conference at 1045 GMT to discuss the latest developments on Greece.
In Berlin, German Chancellor Angela Merkel called an emergency meeting with the heads of parliamentary groups and party leaders, while French President Francois Hollande will chair crisis talks with key ministers in Paris.
In Japan, top government spokesman Yoshihide Suga said G7 finance ministers had held consultations over the weekend, calling the breakdown of talks “extremely regrettable.”
“We appreciate that Eurozone finance ministers on June 27 announced they, together with the ECB, will do everything they can for the stability of the Eurozone,” he told a press conference Monday. A banking source in Greece said only 40 percent of cash machines now had money in them.