€800 million bank run hits banks as Greek debt deadline nears

€800 million bank run hits banks as Greek debt deadline nears
Greek finance minister Yanis Varoufakis (Image: Reuters, Alkis Konstantinidis via Guardian)

[Ed. – So many moving parts in this, the only thing that’s predictable is that if creditors can find a way to extend deadlines, they will.]

A staggering €800 million (£570 million – [$880 million – Ed.]) has been pulled out of Greek banks in less than 48 hours, sparking fears of a major bank run.

Jack Lew, the US Treasury secretary, warned a deal must be reached now and the minor details sorted out later, otherwise “an accident” could unfold forcing Greece from the Eurozone. …

The country, which has been stuck in a deep debt crisis for the past five years, is due to pay back €300 million (£21 million) to the International Monetary Fund next Friday.

However, the IMF has said that deadline could be pushed back until later in June. …

Greece are currently seeking the release of €7.2 billion of aid that has been frozen since last year.

To gain access to it, the country must provide a convincing reform programme to its bailout monitors – the IMF, the European Commission and the European Central Bank.

The bailout expires on June 30 and without it, Greece is likely to run out of cash and face being pushed from the Eurozone.

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