European stock indices are declining on Friday along with the euro while U.S. stock futures are pointing to a flat opening following reports out of Brussels yesterday that Greek leaders are unwilling to accept reform demands from their international creditors as time is nearly running out for Greece to work out a new bailout agreement before a critical €1.6 billion payment to the IMF is due on June 30th and billions more is due next month.
Greek Prime Minister Tsipras met with French and German leaders earlier this morning for another round of talks.
On Saturday afternoon euro group finance ministers will meet and discuss Greece’s financial problems.
Unless Greece can work out a bailout deal by Saturday, it is unlikely that the cash strapped country will avoid going into arrears and default on its €1.6 billion loan to the IMF with no Plan B in sight and growing concerns that Greece could exit the 19 member currency union.
Deposits at Greek banks have dropped to a 11 year low, according to the ECB, as Greeks plan for the possibility of capital controls being imposed from the ECB.
Last week €4.2 billion in deposit outflows hit Greek banks.
Reuters reports this morning that the ECB ‘s governing council decided to keep it emergency liquidity assistance flowing for Greece’s dependent banks.
Time is nearly running out for Athens to reach a new bailout deal since any accepted deal must first be approved by Greece’s parliament and several other European parliaments.