The ECB is ready to pull the plug on Greek banks if there is no agreement in the critical EU Summit on Sunday. Christian Noyer, the governor of France’s central bank, said that if there is no deal, the consequences will be grave with a collapse of the Greek economy and chaos.
Without the Emergency Liquidity Assistance (ELA), Greek banks will go bust. Without banks, new money will have to be created – an exit from the euro-zone. But will it really go ahead? If one country leaves, others could follow, and the ECB itself could shut down.
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