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Door still open for Greece, says Eurogroup head

48 minutes ago

The door remains open for Greece despite the breakdown of bailout talks over the weekend, Eurogroup head Jeroen Dijsselbloem has said.

He said it was still "conceivable" to avoid a Greek exit.

"I continue to say that, for us, the door is still open, although in the meantime the possibilities and time are very limited," the head of the group of eurozone finance ministers told journalists in The Hague.

Greece is hurtling toward an IMF default tomorrow and possible exit from the euro after the shock breakdown of debt talks with creditors on Saturday.

Asked whether it was possible to avoid a Greek exit from the euro currency, a so-called Grexit, Mr Dijsselbloem said "it's still very conceivable".

Voicing disappointment at Greece's exit from talks, Mr Dijsselbloem said the negotiations were "about Greece's future, and despite the talks not being over, they left the table".

Greece looks likely to default on an IMF debt payment of about €1.5bn due tomorrow, a first step on a path that could lead to it exiting the eurozone.

The government in Athens has called a referendum for 5 July on the latest bailout proposal being offered to Greece.

Meanwhile the Economic Management Council met this evening to discuss developments in Greece and across the euro zone.

During the meeting they received briefings from Governor of the Central Bank, Patrick Honohan and Cathal Kelly of the National Treasury Management Agency.

The meeting took note of the calm in the Irish financial markets.

The Government intends to keep developments in Greece under review.

Juncker 'betrayed' by failure to reach Greek bailout deal

EU Commission head Jean-Claude Juncker has said he felt "betrayed" by the failure of Athens to agree on a bailout deal with EU ministers, despite the huge efforts made.

"After all the efforts I deployed from the commission, I feel betrayed because these efforts were insufficiently taken into account," Mr Juncker said at a news briefing.

Mr Juncker said if Greek voters reject proposed reforms in Sunday's referendum they would also be rejecting the European Union.

"A 'No' would mean, regardless of the question posed, that Greece had said no to Europe," Mr Juncker said in Brussels.

In response, a spokesman for the Greek government cast doubt on Mr Juncker's "sincerity", saying: "An essential element in indicating good faith and reliability in negotiations is sincerity".

Meanwhile, German Chancellor Angela Merkel is still prepared to hold talks with her Greek counterpart Alexis Tsipras.

A spokesman for the German leader said Ms Merkel was willing to speak to Mr Tsipras, "if he would like to".

It comes as Greek banks are to remain closed until 7 July, the day after a referendum on bailout proposals.

According to an official decree published early today, ATM withdrawals will be limited to €60 a day in the same period.

The decree on capital controls was published in the official government gazette and titled 'Bank Holiday break'.

It lists the measures imposed on financial institutions lasting from 28 June to 6 July and was signed by President Prokopis Pavlopoulos and Prime Minister Alexis Tsipras.

It cited "the extremely urgent and unforeseen need to protect the Greek financial system and the Greek economy due to the lack of liquidity caused by the Eurogroup's decision on 27 June to refuse the extension of the loan agreement with Greece".

Banks will reopen on Tuesday 7 July, a government statement said.

It said cash machines, many of which are dry after massive withdrawals this weekend, would "operate normally again by Monday noon at the latest".

Pension payments will be exempt from the bank transaction restrictions, while there will be "no problem for wages paid electronically into bank accounts", the statement said.

Internet banking transactions inside Greece will work normally, as will card payments in shops, but transfers abroad will require approval from a Ministry of Finance commission, it said.

Earlier, Athens sought to reassure thousands of tourists currently staying in Greece, saying that people with a credit card issued in a foreign country will not be affected by the limits on ATM withdrawals.

The radical measures have been imposed to protect the banking system against the threat of mass panic at the prospect of a possible default by Greece, and the impact of the referendum announcement on negotiations with creditors.

Meanwhile, European stocks were sharply lower today as investors fear Greece could be heading for a euro zone exit.

Harris says lack of engagement 'cannot continue'

Minister of State at the Department of Finance Simon Harris has encouraged the Greek government to come back to the negotiating table, describing the situation as highly regrettable.

Speaking on RTÉ's Six One News, Mr Harris said that if Greece leaves the euro, it will be disappointing and a bad day for Europe.

He said it is encouraging to see that there has been little movement on the bond markets.

However, he said, a solution is needed, adding that the lack of engagement from Greece cannot continue.

Progress had been made, he said, but that, almost out of the blue, Greek negotiators unilaterally withdrew.

Mr Harris said: "We certainly haven't given up hope and I don't think any of the 18 Eurogroup colleagues have.

"If Greece leaves the euro, it will be a very disappointing day and a bad day for the euro."

Taoiseach Enda Kenny has clarified claims he made in Brussels on Friday evening that the Government had not increased income tax, PRSI payments or VAT during the economic crisis in Ireland.

Speaking in Co Offaly this afternoon, Mr Kenny said that his comments were meant to refer mainly to the hospitality sector which is such an important economic asset to the people of Greece.

http://m.rte.ie/news/2015/0629/711262-greece-banks/