FXStreet (Buenos Aires) – The Greek drama is keeping European officers busy over the weekend, with everyone working desperately on damage control, rather than on a solution to the upcoming default of the country on the IMF next Tuesday.
There was an early rumor saying that the ECB will cut off funds to the country, but the European Central Bank finally decided to keep supplying Greece with emergency loans, albeit it will maintain the ELA at its current levels, around €90B. Given the fact that over the weekend, ATMs in Greece have been dried out, there’s a good chance that local banks will have to close their doors on Monday.
Finance Minister, Yanis Varoufakis may have then to impose capital controls and restrict cash withdrawals from banks, in order to prevent a total collapse of the local banking system.
(Market News Provided by FXstreet)