Greece Still Cash-starved After Decisive 'no' Bailout Vote

[...] as celebrations died down early Monday, Greece entered a second week of severe restrictions on financial transactions and faced the prospect of even limited amounts of cash drying out, with no prospect of an immediate infusion. Besieged by a prolonged recession, high unemployment and banks dangerously low on capital, Greece defaulted on an International Monetary Fund loan repayment last week, becoming the first developed nation to do so. The assistance, now at about 90 billion euros, has been maintained but not increased in past days, leaving the country's financial system in a stranglehold. After Tsipras called for the referendum, negotiations on a financial rescue package broke off with Greece's creditors: other European countries that use the euro, the IMF and the European Central Bank. The main opposition party, New Democracy, was sending an interim chief, after its leader — former Prime Minister Antonis Samaras — resigned Sunday as "no" votes poured in. None of these developments stopped jubilant government supporters' from celebrating into the night in Syntagma Square in front of Parliament, waving Greek flags and chanting "No, no, no!" [...] European officials and most of Greece's opposition parties painted the referendum as one of whether the country kept using the euro currency — even though that was not the convoluted question asked on the ballot. Sigmar Gabriel, Germany's vice chancellor and economic minister, told a German newspaper the Greek government was leading its people "onto a path of bitter austerity and hopelessness." By saying 'no' to the eurozone's rules, as is reflected in the majority 'no' vote, it's difficult to imagine negotiations over an aid package for billions.

 

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