Bank Of Greece Asks ECB For €3.5 Billion As Greeks Withdraw Cash From Banks

aaeeIn a sign of growing unease over Greece teetering closer to a sovereign default combined with ongoing problems Greek leaders are facing in their negotiations with international creditors, €3 billion has already been withdrawn from Greek banks since Monday, resulting in the Bank of Greece asking the European Central Bank on Friday for an extra €3.5 billion, according to Greek newspaper Kathimerini.

Deposit outflows reached €1.2 billion on Thursday alone, pressuring Greece’s vulnerable banks.

According to bank sources cited by Kathimerini, the Bank of Greece submitted an urgent request for €3.5 billion to supply Greece’s banks through emergency liquidity assistance (ELA) and that request will be discussed in a teleconference on Friday between ECB council members.

Some Greeks are concerned about the possibility of capital controls being imposed on them, similar to what was introduced in Cyprus in April 2013.

On Thursday Euro Group finance ministers in Luxembourg were unsuccessful forging anew bailout agreement that allows Greece to receive its final €7.2 billion disbursement, resulting in European Council President Donald Tusk calling for an emergency EU summit meeting on Monday.

Today Greek Prime Minister Alexis Tsipras is meeting in Russia with Russian President Vladimir Putin.

According to Jennifer Rankin from the UK’s Guardian, Russian Deputy Prime Minister Arkady Dvorkovich told a group of business leaders today that Russia is ready to consider financial help for Greece which differs from remarks he made yesterday about Russia not being able to afford to help out.

-Johnathan Schweitzer

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