Greek Worries Lead to Bank Withdrawals

Athens

Amid increasing concerns that Greece may exit the Euro, Greeks pulled 700 million euros (894 USD) from Greek banks on Monday, according to Greek Central banker George Provopoulos. 

With bank deposits dropping, Greek banks are becoming more dependent on the European Central Bank to meet their funding needs.

Minutes from President Karolas’ latest meeting reveal that there was no panic in Greece but great fear that could result into a panic.

Greeks have been withdrawing money from banks for many months and there are no visible signs of bank runs in cities throughout Greece.

Still Greeks are concerned about the financial impact that could result if Greece leaves the Euro and embraces their former drachma currency which would likely be devalued if Greece leaves the 17 member Euro zone.

Greece continues to operate without an elected government, leaving the Greek parliament divided between supporters and opponents of a 130 billion Euro zone bailout package.

Greece received inconclusive findings from their May 6th elections and are set to hold another round of elections on June 17th.

Faced with high unemployment, deep budget cuts, reductions in salaries, and declining GDP spending Greece remains at a standstill as it weighs political future in the European Union and reluctantly embraces imposed austerity measures that is making economic growth largely unachievable.

 

 

 

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