This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/world-europe-33303105
The article has changed 8 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| ECB 'to end Greek bank lifeline' | ECB 'to end Greek bank lifeline' |
| (35 minutes later) | |
| The European Central Bank is expected to end emergency lending to Greece's banks on Sunday, the BBC understands. | The European Central Bank is expected to end emergency lending to Greece's banks on Sunday, the BBC understands. |
| The country's banks depend on the ECB's Emergency Liquidity Assistance (ELA). Its governing council is meeting later. | The country's banks depend on the ECB's Emergency Liquidity Assistance (ELA). Its governing council is meeting later. |
| Greece will probably have to "announce a bank holiday on Monday, pending the introduction of capital controls", a source told the BBC's Robert Peston. | Greece will probably have to "announce a bank holiday on Monday, pending the introduction of capital controls", a source told the BBC's Robert Peston. |
| The bailout for heavily indebted Greece expires on Tuesday and talks have broken down. | The bailout for heavily indebted Greece expires on Tuesday and talks have broken down. |
| Greek banks would find themselves in serious straits as soon as Monday if the ECB went ahead and cut the lifeline, the BBC economics editor says. | Greek banks would find themselves in serious straits as soon as Monday if the ECB went ahead and cut the lifeline, the BBC economics editor says. |
| Capital controls are restrictions on how much customers can withdraw from banks. Until now, the Greek government has signalled that it does not want to impose such controls. | Capital controls are restrictions on how much customers can withdraw from banks. Until now, the Greek government has signalled that it does not want to impose such controls. |
| In recent weeks, Greeks have withdrawn billions of euros from banks, and long queues formed at cashpoints on Saturday, amid fears that banks would not open on Monday. | In recent weeks, Greeks have withdrawn billions of euros from banks, and long queues formed at cashpoints on Saturday, amid fears that banks would not open on Monday. |
| The ECB has been sending emergency funds on a daily basis to the Greek central bank, which then allocates it to the high-street banks. | The ECB has been sending emergency funds on a daily basis to the Greek central bank, which then allocates it to the high-street banks. |
| Grexit risk looms | |
| Austria's Finance Minister Hans Joerg Schelling said a Greek exit from the euro now "appears almost inevitable". | |
| But Robert Peston says a "Grexit" from the euro is not inevitable, as the eurozone did resolve Cyprus's banking crisis in 2013 and the country stayed in the euro. | |
| Capital controls were imposed on Cypriot banks, and remained in place for a long time - the last restrictions were only lifted in April this year. | |
| Greece's situation is more difficult, Robert Peston reports. Capital controls are seen as an important step towards leaving the euro, because the single currency's rules require free movement of capital. | |
| But Greece could remain in if its government and the bailout providers - the EU and IMF - can restart constructive negotiations, he reports. | |
| On Saturday eurozone finance ministers - the Eurogroup - refused to extend Greece's desperately-needed bailout beyond Tuesday. | |
| The ministers blamed Greek Prime Minister Alexis Tsipras's surprise call for a referendum on 5 July on the bailout conditions. | |
| The final €7.2bn (£5bn; $8bn) of Greece's second bailout has been frozen since last summer, as lenders demanded more Greek progress on deep economic reform. | |
| Without more lending to Greece the country will default on a €1.6bn repayment due to the IMF on Tuesday. |