Greece on the brink of collapse
By Duncan Richardson, News Editor
22 Jun 2015
The Greek government and Eurozone leaders have one day to find a solution to Greece’s sovereign debt crisis. Alex Tsipras will meet with European leaders this afternoon in a last ditch attempt to thrash out a compromise.
Overnight Tsipras set out a new proposal to the countries creditors in a hope of unlocking additional bailout funds. The Greek government, IMF and the EU have been at loggerheads for 5 months with both sides refusing to back down.
Greek banks are running out of money fast as savers start to withdraw deposits as concerns rise the banking system is on the edge of insolvency. In the meantime the Greek government has tapped emergency funding from the ECB to halt the system imploding. If today’s talks break down and the emergency funding withdrawn the Greek government may impose capital controls to halt withdrawals and stop banks running out of money altogether. Last week 500 million euros was withdrawn each day from Greece’s ailing financial sector.
Despite the Greek crisis the gold price is down slightly at £753.50 per ounce during early trading.