29th June 2015
Banks in Greece will be closed all week following the European Central Bank’s (ECB) decision not to extend the economically embattled nation another lifeline.
According to BBC News cash withdrawals will be capped at €60 (£42) for the week but the limit will not apply to holders of foreign bank cards.
Greeks have been queuing en masse over the weekend to withdraw money from cash machines leaving many empty.
Prime Minister Alexis Tsipras also urged that Greek deposits were safe.
The Greek government, is due to make a €1.6bn payment to crisis lender, the International Monetary Fund (IMF) on Tuesday, when its present bailout expires.
If Greece fails to replay the loan it risks default and a possible exit from the 19-member eurozone currency bloc.
A week of emergency talks with eurozone finance ministers over the country’s rescue package delivered no result with both parties hitting an impasse.
Greece’s PM has since announced a surprise referendum on the matter to be held on 5 July.
Overnight markets in Asia moved sharply lower, with the euro selling off as well, while in the bond markets yields on Spanish bonds are rising sharply.
Stephanie Flanders, chief market strategist for Europe at JP Morgan Asset Management said: “Greece has a week to consider the terms of a bailout that is no longer even on offer. In the meantime its banks will remain closed and its economy will take another massive hit. On average 59 Greek businesses have closed down every day since the start of the year. This week that number will surely soar.”