China was the long bright star in Asia’s equity markets early Monday following the People’s Bank of China’s (PBOC) decision to lower its benchmark lending rates by 25 basis points to 4.85 percent on Saturday. Other regional bourses suffered a heavy selloff after Greece failed to clinch a deal with its international lenders over the weekend to avert a default.
Greece desperately needs emergency funding to repay its loans by June 30 and the debt-stricken nation is now headed for a bailout referendum on July 5, authorized by Greek lawmakers over the weekend. A yes vote will mean that Greeks are willing accept the latest bailout terms offered by creditors to Athens, while a rejection will likely increase Greece’s chances of exiting the Eurozone.
According to Reuters, Greek government officials have confirmed early Monday that banks will be closed until July 6, while ATMs will reopen later in the day with a daily withdrawal limit of 60 euros.