The country’s position is rapidly getting worse.
After the closure of the banks and the imposition of capital controls, the default will be formalized on Tuesday.
The government does not have the funds to pay what is owed to the International Monetary Fund, it cannot meet its obligations. Irrespective of whether the debts are declared overdue, the procedures for the country’s transition to a state of default will be initiated automatically.
Sources report that the European Central Bank will act without delay, treating the Greek weakness as a sign of default and carry out a major haircut of the value of guarantees offered by Greek banks for refinancing purposes.
Essentially our Banks will have limited funding options; they will be deemed to be lacking the necessary capital and will collapse in a few days.
They will not be in the position to cover the 60-euro daily withdrawal limit. Already the Ministry of Finances has recognized that it cannot make the 240 euro payments to pensioners and has restricted it to 120 euros,
Nobody believes that the banks can return to functioning normally without major consequences for them and their account holders.
In other words, the developments are dramatic for the Greek economy from the moment the talks collapsed and the referendum was announced, without having made any essential preparations.
And all of this in only three days; there are many more until the referendum. We have a lot more to witness until Sunday.
Unfortunately those responsible – despite having been warned long before they assumed their duties – do not realize, not even now, the critical nature of circumstances and do not comprehend the extent of the imminent national catastrophe.
It is objectionable that the Prime Minister himself appears relaxed, calmly stating that the day after the referendum everything will be normal dn that he will be in the position to reach an agreement with our partners in a few hours!
Antonis Karakousis
