ANGER BURNS AS MONEY RUNS OUT
GREECE is on a “war footing”, says Finance Minister Yanis Varoufakis warning the country’s cash flow could dry up before the end of the weekend.
The near- bankrupt nation’s banks have reportedly only 500 million euros left in cash reserves and many businesses said they could not access enough money to send to suppliers to continue to import goods to maintain business.
Many ATMs are now out of cash and not being restocked with banks not expected to re- open until next Tuesday but already some are warning they still may not have enough cash to reopen with, and certainly not to handle an expected stampede of savers trying to get savings out. Fuel is being rationed and some stations are refusing to accept debit and credit cards. The nation’s economy is virtually paralysed and many fear a referendum this weekend regardless of the result will not change that.
The Greek Central Bank was expected to release emergency funds but it was unclear whether that would be enough.
Prime Minister Alexis Tsipras and Mr Varoufakis continued to campaign through local TV networks for Greek people to vote “no” to EU creditors’ demands for reform.
The Australian dual national finance minister said he would resign if the country voted to accept the Eurozone debt restructuring plans and reiterated the nation was on a war footing in terms of its finances, again pointing blame toward the EU.
There are daily mass rallies across Athens as frustrated citizens vent their fury and or support for the left wing government.
Tsipras maintains that a “no” vote strengthened Greece’s bargaining in negotiations and did not mean it would have to quit the euro or Europe but MPs from across Europe yesterday thought differently.
French President Francois Hollande said a “no” could send the eurozone “into the unknown”.
The head of the Eurogroup of finance ministers, Jeroen Dijsselbloem, also said: “In case of a ‘ no’, Greece’s situ- ation will become exceptionally difficult.”
Various polls on the likely referendum result are split.
As if matters could get worse, the International Monetary Fund, who gave the 1.6 billion euro loan that Greece defaulted on Monday, said the nation would need 50 billion euros over the next three years to stabilise its finances.
In a new report, the IMF acknowledged a huge deterioration in the country’s prospects as it slashed its 2015 national growth forecast from 2.5 per cent to zero.