With another 1.2 billion euros leaking out of Greek banks on Friday, bringing the weekly figure to 4.2 billion, according to Reuters, a cash crunch is looming for the Greeks.
Some banks and travel agents are advising holidaymakers to take extra cash with them in case ATMs are shut down during their holidays. Yet the markets were unperturbed on Friday. is it the calm before the storm?
Euronews’ Oleksandra Vakulina spoke to Senior Analyst at FX Pro in London, Angus Campbell.
“The markets’ reaction to the Greek crisis is showing few signs of panic, why is that?”
“The markets aren’t panicking yet, because they feel that there is still very much a deal to be had.And we have this next big, big landmark meeting on Monday. It’s a crucial day, Monday, because time is sort of running out really for any agreement to be made, because it has to be done ahead of the end of the month for Greece to ratify it in their parliament. So really time is running out, but what it does demonstrate more than anything else is that political will remains, it’s very, very clear.”
“The European Central bank has accepted Athens’ request for more emergency liquidity…”
“This is a bit of a, a sort of a standout landmark event, only because it comes outside of their normal weekly review of the Greek funding situation. It’s a sort of one-off to get Greece through the weekend and to Monday, because the ECB has always been consistent in saying it will remain there to aid Greece as long as negotiations look like there is going to be a sort of an outcome.
So we have this extension to Monday and they are willing to obviously just extend that emergency funding today.”
“What’s more dangerous for Greece? Its inability to repay creditors or a run on the banks?”
“Well I think that they come very separately and they come in steps.
If we don’t get a deal on Monday deal then you are going to have the first step first, that will be capital controls, before the default at the end of the month.
But I think certainly capital controls really is as significant as default. Because we know that without a deal, Greece is not going to meet its obligations at the end of this month and certainly not through the summer.”