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Greece: euro zone sets emergency summit

Friday, June 19, 2015 - 02:07

Euro zone leaders will hold an emergency summit on Monday to try to avert a Greek default after bank withdrawals accelerated and government revenue slumped as Athens and its international creditors remain deadlocked over a debt deal. David Pollard reports

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From one set of urgent talks to another. Euro zone leaders now due to gather on Monday for an emergency summit to try to avert a Greek default. That after Thursday's finance ministers' meeting in Luxembourg failed - according to Eurogroup Head, Jeroen Dijsselbloem and IMF chief, Christine Lagarde. (SOUNDBITE) (English) EUROGROUP CHAIRMAN, JEROEN DIJSSELBLOEM, SAYING: "We haven't heard a credible and full plan tonight, that's my side of the story. (SOUNDBITE) (English) INTERNATIONAL MONETARY FUND MANAGING DIRECTOR, CHRISTINE LAGARDE, SAYING: "The key emergency in my view is to restore a dialogue with adults in the room." It's eleven days now until Greece has to make a crucial debt repayment of 1.6 billion euros to the IMF. Without that being made, Lagarde warned Greece would be in default. More anxiety for Greece - for whose finance minister, Yanis Varoufakis, the negotiations already in the red zone. (SOUNDBITE) (English) GREEK FINANCE MINISTER, YANIS VAROUFAKIS, SAYING: "We are dangerously close to a state of mind that accepts an accident. And I urge my colleagues not to fall prey to this state of mind. Monday may also see another unwelcome milestone in the debt crisis. The ECB is reportedly warning Greek banks may not be able to open. Its governing council due, it was said, to hold a special conference call to consider emergency liquidity. Greek savers pulled out some 2 billion euros between Monday and Wednesday after last weekend's negotiations collapsed, according to senior banking sources. That's double the amount that the ECB granted Greek banks in extra liquidity only on Wednesday. Justin Urquhart-Stewart of Seven Investment Management. SOUNDBITE (English) SEVEN INVESTMENT MANAGEMENT MARKET ANALYST, JUSTIN URQUHART-STEWART, SAYING: ''If the worst does occur, and Greece does default, and Greece gets thrown out of the euro zone, the it finds itself in a terrible position where it needs an emergency currency. Short-term, you find a shortage of cash - people will take cash out of banks, they'll take cash out of the country in any form they can.'' And - a day after thousands demonstrated against austerity measures and in support of the government - Thursday saw another protest in Athens. This time, thousands pleading with prime minister Alexis Tsipras and his Syriza ministers to end the deadlock with Europe. Greece's beleaguered government under extreme pressure both abroad and at home.

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Greece: euro zone sets emergency summit

Friday, June 19, 2015 - 02:07