Greece stands on the brink of a banking collapse and disorderly exit from the euro after its creditor powers lashed out at Athens' plans to hold a referendum by vowing to pull the plug on the country in just three days.
Eurozone finance ministers last night withdrew tentative plans to release €15bn to the debtor country, after Alexis Tsipras, the Greek prime minister, said he would put the “humiliating” package of austerity demands to a public vote on July 5. Unless the cash-strapped country can scramble together €1.55bn Tuesday, it will become the first developed country in history to default on its International Monetary Fund loan on June 30. On the same day, it's €240bn rescue programme will also formally expire throwing its banking system into turmoil.
Creditors powers, stunned by Mr Tsipras's audacity to call a public vote, rejected his pleas to extend the programme for a few weeks to allow the vote to be held next Saturday.
The voice of Jeroen Dijsselbloem, the head of the Eurogroup, cracked with emotion as he announced that his 18 colleagues had rejected Greece’s demand.
“We must conclude that however regretful, the programme will expire on Tuesday night,” he said. “It will expire.”
A wounded Mr Dijsselbloem added that even in the event of a yes vote by the Greek people, creditors could no longer cooperate with radical Leftist government due to "grave concerns about credibility". Read on and comment » | Matthew Holehouse in Brussels and Mehreen Khan | Saturday, June 27, 2015
