HIGHLIGHTS-Greece imposes controls on capital after negotiations break – Reuters Italy

       

ATHENS / FRANKFURT, June 29 (Reuters) – Greece has introduced controls on the movement of capital and held closed banks throughout the week, after the sudden rupture negotiations with international creditors on the package of measures to obtain the release of funds needed to avoid default later this month. Also closed the Athens Stock Exchange.

       

The dramatic shift was consumed after the announcement of Prime Minister Alexis Tsipras of the will of the government to hold a referendum next Sunday on the supply agreement made by the EU Commission, ECB and IMF, after five months of fruitless negotiations.

       

Announcing the consultation, the greek government has asked the creditor institutions to extend the term of the financial assistance program, which expires at the end of the month, until July 6, the day after the vote, receiving a negative reply.

       

Greece, not being able to pay 1.6 billion due on June 30 at the International Monetary Fund will start so to a default that is likely to take it out of the single currency.

       

In the light of these developments yesterday the directors of the European Central Bank left unchanged at the level of Friday the roof to emergency funds Ela (Emergency liquidity assistance), only lifeline that has kept afloat the greek banking system in recent months.

       

This is despite following the announcement of the referendum, which received the green light from the greek parliament, the influx of investors to ATMs to withdraw cash has intensified after the massive spill in recent weeks.

       

From here the decision to hold closed the banks and put a ceiling on withdrawals. Also today ATMs will be closed, while tomorrow we will be able to withdraw a maximum of 60 euro per day.

       

Tsipras has sought to reassure the public about the safety of their accounts and that salaries will be paid to the state.

       

The proposal made by creditors to Greece, which he got from the EU, IMF and ECB loans amounting to approximately 240 billion, provided for the satisfaction of financial needs until November, in exchange for pension cuts and tax increases. More …