The Telegraph: Greece Planning Nationalising Banks, Issuing Parallel Currency

Greek pensioners participating in unions protest take some rest sitting on the monument of the Drachma, the old coin of the country, in Athens, Greece, on 01 April 2015. EPA/BGNES

Greece is drawing up plans to nationalise banks and introduce a parallel currency to pay salaries and pensions unless the eurozone softens its demands for austerity measures, according to Britain’s The Telegraph .

The governing coalition led by left-wing Syriza party could also decide to default on an International Monetary Fund (IMF) loan next week, according to sources close to Syriza, the newspaper said.

“We are a Left-wing government. If we have to choose between a default to the IMF or a default to our own people, it is a no-brainer,” The Telegraph quoted a senior Greek official as saying.

“We may have to go into a silent arrears process with the IMF. This will cause a furore in the markets and means that the clock will start to tick much faster,” the source added.

Greece has to pay EUR 458 M to the IMF on April 9. If the government does this, it won’t have enough money left to cover salary and social security payments to state employees unless the eurozone agrees to disburse the next tranche of its interim bailout financing in time.

“We will shut down the banks and nationalise them, and then issue IOUs if we have to, and we all know what this means. What we will not do is become a protectorate of the EU,” according to a source The Telegraph quoted in its article.

 

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