Greek Banks Expect Massive Outflows Following Latest Failure of Bailout Talks

An elderly man passes by a monument linked to his country`s past -- a replica of one drachma coin, in central Athens, Grrece, 19 June 2015. Photo: EPA

Greek banks are expecting to be subjected to massive outflows after the latest round of talks between Athens and its international creditors on agreeing a new bailout for the country, failed to reach progress on Thursday.

Almost EUR 3 B euros have been withdrawn from Greek banks this week, with bank managers expecting even more outflows on Friday, the Greek Reporter informs.

A representative of the European Central Bank (ECB) expressed doubt whether Greek banks would have funds to be able to open on Monday.

The governing council of ECB will hold an emergency meeting on Friday to discuss a request from the Bank of Greece for an increase in liquidity to Greek banks.

This request comes just after the ECB approved an increase in the Emergency Liquidity Assistance (ELA) ceiling to EUR 84.1 B.

European political leaders agreed to convene an emergency Euro Summit on Monday as a last resort to prevent Greece from defaulting on its IMF loan and going bankrupt.

Greece has to make EUR 1.6 B loan repayment to the International Monetary Fund (IMF), which falls due on June 30, but the government is short of funds to meet the payment.

However the creditors are reluctant to grant new bailout to Greece before the country agrees to carry out a set of reforms, which Athens deems to be too austere.

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