What would the effects be of a Grexit and is it the worst scenario for the eurozone?Why is a Greek deal so urgent?In theory, Athens has until 30 June – when it is due to make a €1.6bn (£1.15bn) payment to the International Monetary Fund – to secure a fresh injection of cash from its creditors. They have held up the €7.2bn remaining in its bailout fund, until an agreement on economic reforms can be reached.But it has become increasingly clear that the country’s already fragile financial sector is now suffering a debilitating bank run. A total of €2bn was withdrawn from Greek banks between Monday and Wednesday this week, as scared savers opt to put their cash under the mattress. That more than swallows up the €1.1bn increase in emergency funding for Greek banks that the European Central Bank rubberstamped on Wednesday. Continue reading...
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