Fears grow over Greek banks’ health amid reports of capital flight – BBC News

• 19 June 2015
• From the section Business

The European Commission, ECB and IMF are insisting on reform and further austerity measures

Fears are growing over the health of Greek banks after reports that savers have withdrawn billions of euros in the past week.

Capital flight from beleaguered Greek banks this week alone could be more than €3bn (£2.1bn), reports say.

Savers are moving funds as time runs out on Greek debt crisis resolution.

It is understood the European Central Bank will hold a meeting later to agree more emergency liquidity assistance for the banks.

And on Monday, an emergency summit of leaders from eurozone nations will be held after the latest attempt to resolve the Greek debt crisis failed.

A meeting of eurozone finance ministers on Thursday made no breakthrough.

The head of the Eurogroup of finance ministers, Jeroen Dijsselbloem, said that “too little” progress had been made and that “no agreement as yet is in sight”.

Greece has less than two weeks remaining to strike a deal or face defaulting on a €1.6bn (£1.1bn) loan repayment due to the International Monetary Fund.

The country has already rolled a €300m payment into those due on 30 June.

If it fails to make the payment, it risks having to leave the eurozone and possibly also the EU.

But the European Commission, the IMF and the ECB are unwilling to unlock bailout funds until Greece agrees to reforms.

They want Greece to implement a series of economic changes in areas such as pensions, VAT and on the budget surplus before releasing €7.2bn of funds, which have been delayed since February.

Mr Dijsselbloem stressed that “very little time remains” for Greece.

But Greek Prime Minister Alexis Tsipras said on Friday that there will be a solution to Greece’s debt crisis.

“The [eurozone] leaders summit on Monday is a positive development on the road toward a deal,” Mr Tsipras said in a statement.

“All those who are betting on crisis and terror scenarios will be proven wrong.”

He added: “There will be a solution based on respecting EU rules and democracy which would allow Greece to return to growth in the euro.”

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