Euro zone sets emergency summit on Greece as money flees
Source: reuters.com
Euro zone leaders will hold an emergency summit on Monday to try to avert a Greek default after bank withdrawals accelerated and government revenue slumped as Athens and its international creditors remain deadlocked over a debt deal.
See video here: New round for Greek stand-off
Finance ministers of the 19-nation currency bloc failed to make any breakthrough on a cash-for-reforms agreement at talks in Luxembourg on Thursday, just 12 days before Greece must make a crucial debt repayment to the International Monetary Fund.
The European Central Bank told the meeting it was not clear whether Greek banks would be open on Monday, officials said.
"Regrettably ... too little progress has been made. No agreement is in sight," Jeroen Dijsselbloem, chairman of the Eurogroup, told a news conference. Ministers sent a strong signal that it is up to Greece to make new proposals, he said.
European Council President Donald Tusk said in a statement he had summoned heads of state and government of the euro area to meet in Brussels at 1700 GMT on Monday to discuss Greece "at the highest political level".
IMF Managing Director Christine Lagarde said further dialogue was needed "with adults in the room".
Greece said it had put a "radical proposal" for budget monitoring on the table to show its willingness to reach a deal, the finance minister said.
Dijsselbloem said if there was a last-minute deal next week, there would have to be some extension of the current bailout to allow time for disbursement.
Greek savers pulled out some 2 billion euros between Monday and Wednesday after weekend negotiations collapsed in Brussels, senior banking sources told Reuters. That is double the amount that the European Central Bank granted Greek banks in extra emergency liquidity assistance (ELA) this week.
Read more: reuters.com
