June 2015 – GREECE – Greece’s banks may need an injection of fresh emergency funds to operate on Monday as people rushed to pull out money after Prime Minister Alexis Tsipras called a referendum that could decide his country’s fate in the euro. Two senior Greek retail bank executives said as many as 500 of the country’s more than 7000 ATMs had run out of cash as of Saturday morning, and that some lenders may not be able to open on Monday unless there was an emergency liquidity injection from the Bank of Greece. An official with Greece’s Capital Markets Commission, the markets’ regulator, also warned that the Athens Stock Exchange may be unable to operate on Monday without a cash injection into the banking system. A Greek central bank spokesman said it was making efforts to supply money.
The European Central Bank’s governing council was expected to hold a conference call on Sunday to review the banks’ liquidity condition, said a Greek official, who asked not to be named in line with policy. The Frankfurt-based central bank said in a Twitter post that it’s closely monitoring developments and would review the situation “in due course.” Some banks were placing limits in daily cash transactions. Yiota Kardogianni, a manager at a branch of Piraeus Bank SA, said cash withdrawals were limited at 3000 euros ($4375) daily and ATM withdrawals at 600 euros. Alpha Bank AE had set a daily limit of 5000 euros for most of its branches since last week.
“I’m here to take my mother’s pension out before the machine runs out of cash,” said Erato Spyropoulou, who was standing in a line of about eight people at one of National Bank of Greece SA’s ATMs. “It’s very worrying what’s happening because people don’t know what they’re being asked to vote for. It’s the last nail in Greece’s coffin.” Euro-area finance ministers rejected Greece’s request for a one-month extension of its aid program, which expires Tuesday, shutting down any last chance for a financial stopgap until the referendum is held. After withdrawing more than 30 billion euros as the anti-austerity Coalition of the Radical Left, or Syriza, took power, depositors are now reacting to the latest twist in the five-month standoff with European leaders and creditors. One banker said 110 million euros had been withdrawn from his institution as of 11.30 am Athens time on Saturday.
The European Central Bank has been reviewing liquidity conditions at Greek banks daily in the past week. Banking officials in Athens said they were expecting a shortage of euro notes by as early as Saturday evening. They asked not to be named because of the sensitivity of the matter. Greek bank deposits by businesses and households fell to 129.9 billion euros in May from 133.7 billion euros the month before, according to data released by Bank of Greece on its website on Thursday. –SMH
China another warning sign of growing economic risks: Chinese stock markets crashed on Friday, June 26th, posting their biggest daily decline in seven years. The Shanghai Composite and the Shenzhen Composite tumbled 7.4% and 8.2%, respectively. More than two thousand stocks fell 10%, the maximum daily loss allowed by regulators. The ChiNext Board also experienced the largest daily loss since its inception. The ChiNext board is a NASDAQ-style board of the Shenzhen Stock Exchange focusing on innovative and fast-growing companies. On Friday, nearly 400 stocks fell on the ChiNext Board, with the ChiNext Index plunging. The post Stock Market Crash: Chinese Economic Collapse Feared After Stocks Plunge 7.4% appeared first on Profit Confidential. –The Jutia Group