Euro zone leaders told Greece on Thursday its leftist-led government must implement agreed reforms to avert a looming cash crunch that could force it out of the single currency. Greece has been kept from bankruptcy by two international bailouts but now risks running out of money within weeks if it does not receive more funds. Greek banks reported the largest deposit withdrawals in a month, a sign savers are worried about the outlook for the country’s finances and institutions.
Prime Minister Alexis Tsipras requested a meeting with the leaders of Germany, France and the main EU institutions on the sidelines of a European Union summit to press for Athens to receive short-term funds to keep itself afloat. German Chancellor Angela Merkel doused any expectation of a deal at the late-night session, saying decisions were up to the Eurogroup of finance ministers of the 19-nation euro area.
“I want to say: don’t expect a solution, don’t expect a breakthrough. It’s not the right setting,” she told reporters on arrival at the summit. “Decisions are made in the Eurogroup and that’s how it will remain.” French President Francois Hollande said the message to Tsipras would be that all sides must stick to their commitments.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.