On the brink: Greece heads for default

The surprise referendum announced on Friday night by Alexis Tsipras, Greece’s prime minister, has torpedoed expectations of an 11th-hour deal between Greece and its creditors. Instead, Greece will probably miss a €1.5 billion ($1.7 billion) payment to the IMF tomorrow, when its bail-out programme also expires. Last night Mr Tsipras declared that banks would not open today and that capital controls would be imposed, after the European Central Bank decided to cap the emergency liquidity it provides to Greek lenders. More surprises are likely before next Sunday’s vote. One question is what Greeks will vote on. The government will recommend that they say no to reforms the creditors proposed last week. But their offer expires with the bail-out. It is hard to see how Mr Tsipras can stay in office if they say yes. A more immediate concern is markets’ reaction to the weekend’s turbulence. It will be a dizzying week.


MORE ON



2 topics

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.