Following a 61% ‘No’ vote, Greece’s future within the EU has become even more uncertain as Finance Minister Yanis Varoufakis announced his resignation over the weekend.
Leaders will meet in Brussels today for another EU crisis summit.
Greek banks started closing and offering limited withdrawals following their shut down on June 29th when the European Central Bank froze Greece’s funding following the lack of payment.
3 days before the weekend’s referendum, the International Monetary Fund (IMF) published a report stating that Greece needs significant debt relief – €50 billion over three years. This follows the €240 billion that the country has been reliant on since 2010 in the form of loans. Now Greece’s debts total more than €300 billion, totalling nearly 180% of its GDP. The country’s public sector salaries – including pensions, social security and ambulance services – total €2.2 billion per month which still need to be paid. Public sector bodies – including hospitals – have already been asked to surrender any cash reserves they have.
The IMF has waned that despite attempts to stop the crisis from spreading, a sharp fall on markets worldwide is expected.