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Polls show Greece remains divided ahead of tomorrow's bailout referendum

The Greek Finance Minister has denied reports that the country's banks are preparing plans to sei...
Newstalk
Newstalk

17.35 3 Jul 2015


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Polls show Greece remains divi...

Polls show Greece remains divided ahead of tomorrow's bailout referendum

Newstalk
Newstalk

17.35 3 Jul 2015


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The Greek Finance Minister has denied reports that the country's banks are preparing plans to seize 30% of customers' savings, as part of a restructuring of the banking sector.

Yanis Varoufakis described the report in The Financial Times as a "malicious rumour".

The paper says the plan would apply to deposits above €8,000, and would take place if Greece agrees another bailout programme.

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Meanwhile, Mr Varoufakis has accused the country's international creditors of "terrorism" against Greece.

His comments come as the polls show that Greek voters remain evenly split on tomorrow's bailout referendum.

The Greek Prime Minister Alexis Tsipras has urged a No vote, insisting it will mean an end to the country's future in the eurozone.

Sky News has reported that tracking data shows a 1% lead for the government-led No campaign.

However the latest opinion polls in Greece suggest the Yes side looks set to win tomorrow's bailout referendum by a narrow margin.

Dublin protest

Meanwhile an Irish protest is underway in Dublin in solidarity with the Greeks calling for a No vote in the referendum.

Demonstrators are expected to march from the Central Bank to the Dáil in what they call 'a common battle against austerity in both countries'.

Co-ordinator for the Greek Solidarity Committee Ronan Burtenshaw says they have a unique way of showing support:

Demonstrators are expected to gather outside Dublin's Central Bank from midday.

With just over 24 hours to go until voting begins in Greece, a result is far too close to call. But last night’s gathering of over 60,000 people in Syntagma Square in Athens in support of the government’s position against the referendum gave a huge boost to its campaign.

A similar, yet low key rally was held nearby by Yes campaigners, and police reported a few minor scuffles as tensions rise in the Greek capital.

This taxi driver in Athens told Newstalk reporter Shona Murray that many Greeks may vote No as an act of political defiance:

The government is asking the Greek people to vote against accepting a bailout deal under conditions applied by Greece’s lenders in the EU, IMF and ECB.

Prime Minister Alexis Tsipras says by doing so it will strengthen Greece’s hand in negotiations, insisting it will not have negative repercussions for bank deposits, or Greece’s membership of the euro – something that is not confirmed by eurozone leaders.

The very act of holding a referendum on such vital fiscal matters in such short time space is being criticised by several international legal institutions, but the Greek constitutional court verified its legality yesterday.

Financial crisis

Poverty and unemployment is at a record high in Greece after years of fiscal recklessness by successive Greek governments as well as the failure of two Troika-led bailouts which sought to restructure the economy.

The head of the country's banking association said that Greek banks have a "liquidity cushion" of €1bn - but funds beyond Monday depend on the European Central Bank.

"Liquidity is assured until Monday, thereafter it will depend on the ECB decision," Louka Katseli said.

The figures at the heart of the country's financial crisis were yesterday laid bare by the International Monetary Fund.

The organisation said Greece faces a huge financial hole regardless of the outcome of the referendum and would need some €50bn as well as a massive debt writedown.

The capital controls which limit cash withdrawals to €60 per-person-per-day could well be tightened - even before the referendum is staged.

Bank branches and the Athens stock exchange - shut all week - are expected to remain closed until Tuesday at the earliest.

In a rare move, 16 former armed forces leaders of Greece have signed a joint declaration calling on the Greek people to show "calm and national unity" ahead of the vote.


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