ATHENS: Greece was staring at a massive financial crisis with final cash reserves of its banking system down to a precarious euro 500 million, as the country prepared to vote in a Sunday referendum that could decide its future in Europe.
The International Monetary Fund has in a report said that Greece needs large-scale debt relief and 50 billion euro of fresh funds over the next three years to give the economy time to recover.
In Greece, small businesses and restaurants have begun shutting down with the cash supplies drying up. The daily allowance of cash from many ATM machines has dropped from 60 euro to 50 euro. Petrol stations and small businesses have stopped accepting credit cards.
Constantine Michalos, head of the Hellenic Chambers of Commerce, said lenders are running out of money. “We are reliably informed that the cash reserves of the banks are down to 500 million euro. Anybody who thinks they are going to open again on Tuesday is day-dreaming. The cash would not last an hour,” he said, according to the Telegraph.
