Having walked away from talks on a further bailout program, Greece has moved one step closer to Grexit – its departure from the euro and introduction of a new currency. With the abrupt rejection by the Greek government of the conditions in the bailout on the table, weeks of talks to find a compromise between Greece and its international creditors ended in failure. Following Prime Minister Tsipras’ announcement that the Greek people should decide per referendum whether to accept the creditors’ final offer, talks have been put on ice for now, if not permanently, dashing hopes of at least a provisional accord before expiry of the second bailout. Without fresh financial aid, the country will soon face insolvency which in turn would call into question the continuation of the ECB’s emergency liquidity assistance program that is currently shielding the Greek banking system from collapse. A Grexit could still be avoided, but this would require the willingness on the part of the Greek people as well as the government to reach an agreement.
Read the full NewsLine in the pdf below
Read the full NewsLine in the pdf below