The meeting of the financial stability board of Greece has resulted in a recommendation to keep banks shut and the stock exchange shut for a whole week. The cabinet meeting is expected to approve the recommendation.
Measures to curb capital were expected after the ECBÂ only maintained the current ELA and as Greeks withdraw money out of ATMs in massive amounts.
This emerged after a meeting between Greek finance minister Yanis Varoufakis and the governor of the Bank of Greece Yannis Stournaras. Also Piraeus Bank chief made a similar comment about it.
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Yet while this was expected, it still symbolizes a severe deterioration in the crisis. The current bailout program ends on June 30th, which is Tuesday. Negotiating with closed banks is certainly problematic for the Greek government.
In other developments, the IMF said it is disappointed by the Greek decision but they also said they are ready to negotiate and hinted that debt restructuring is necessary – something the EU opposes.
