[VIDEO] Greeks defy Europe with overwhelming referendum 'No'

Greeks overwhelmingly rejected conditions of a rescue package from creditors on Sunday, throwing the future of the country's euro zone membership into further doubt and deepening a standoff with lenders.

Stunned European leaders called a summit for Tuesday to discuss their next move after the surprisingly strong victory by the 'No' camp defied opinion polls that had predicted a tight contest.

The euro currency and stock prices in Asia fell sharply in early trade, although dealers emphasized that markets were orderly, with no signs of financial strain. European stock and bond markets were expected to take a hit when they open for trading later on Monday.

In Athens, thousands of jubilant Greeks waving flags and bursting fire crackers poured into the city's central square as official figures showed 61 percent of Greeks had rejected a deal that would have imposed more austerity measures on an already ravaged economy.

"You made a very brave choice," Prime Minister Alexis Tsipras said in a televised address. "The mandate you gave me is not the mandate of a rupture with Europe, but a mandate to strengthen our negotiating position to seek a viable solution."

The vote leaves Greece in uncharted waters: risking a banking collapse that could force it out of the euro.

Without more emergency funding from the European Central Bank, Greece's banks could run out of cash within days after a week of rising desperation as banks shut and cash machines ran dry. That might force the government to issue another currency to pay pensions and wages.

For millions of Greeks the outcome was an angry message to creditors that Greece can no longer accept repeated rounds of austerity that, in five years, had left one in four without a job and shrank the economy by a quarter.

Via: Reuters

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Greece will close banks Monday as panic spreads

ATHENS — In an ominous sign Sunday that Greece is speeding toward a banking collapse, Prime Minister Alexis Tsipras announced that Greek banks will be closed Monday amid last-ditch discussions about his nation’s economic future.

The decision was a sign that Greece’s half-decade battle to stay in the shared euro currency may swiftly be coming to an end. ATMs in Athens were running out of money, and tensions were running high Sunday as Greeks stood in line for hours to scrape together petty cash for basic supplies. Lines mounted at gas stations as worried residents topped off their tanks for what could be a period of time in a cashless nation.

“The decision not to prolong financial aid to Greece is offensive, and it’s a disgrace for Europe in general,” Tsipras said in a brief Sunday evening address broadcast across Greek television networks.

There were signs that Greece’s creditors — the International Monetary Fund and euro-zone governments — were leaving the door open to negotiations. But it remained deeply unclear ahead of a Tuesday repayment deadline how Greece would be able manage its finances without going into default.

Tsipras said that he had asked E.U. leaders to extend their assistance to Greece past the Tuesday deadline, calling the threat to cut it off “blackmail.” But he gave no concrete indications that he had made any concessions that would cause them to change their minds.

Via: Washington Post

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