FXStreet (Bali) – European leaders will hold what is believed to be the final make-or-break summit next Sunday in order to determine Greece’s fate as a member of the Eurozone, with the failure to reach a deal likely to lead to the unprecedented step of excluding the country out of the shared currency union based on commentaries by key actors.
Between now and Sunday, Greece was given the familiar instructions of putting together a convincing and comprehensive package of reforms in the eyes of their European peers, in exchange of further bailout money, amid an unsustainable financial tragedy in the country, with banks still closed due to lack of liquidity.
People familiar with the matter said the banks could be running out of money to dispense cash via ATMs within two business days unless ECB intervenes with additional ELA provisions.
“We have only a few days left to find a solution,” German Chancellor Angela Merkel told reporters, via Bloomberg, adding that she is “not especially optimistic.”
“We have a Grexit scenario prepared in detail,” European Commission President Jean-Claude Junckera> said.
Meanwhile, European Union President Donald Tusk said: “Our inability to find agreement may lead to the bankruptcy of Greece and the insolvency of its banking system. If someone has any illusions that it will not be so, they are naive.”
Greek PM Alexis Tsipras crossed the wires, noting: “The Greek government submitted a proposal, aiming for socially just and economically viable agreement, including credible reforms in return for commitment to adequate funding.”
Tsipras added that the discussion was positive with a target to conclude the process by end week latest, and that he aims for “final exit from the crisis”
(Market News Provided by FXstreet)