Happy to reject the terms of bailout offer, the Greek voters celebrated in Athens. The final outcome in the referendum was 61.3% “No”, against 38.7% “Yes”. The Syriza party in Greece campaigned for a “No”, as they were of the view that the bailout terms were humiliating. Henceforth, the bailout terms have been decisively rejected.
According to the head of the Eurozone’s group of finance ministers, the result of the referendum was very unfortunate for the future of Greece.
According to a recent analysis, the Greek banks are running critically low and they will need sufficient emergency funds from the European Central Bank.
Given the bitterness of the past two weeks, it will be hard for Greece to get back around the negotiating table. Also the banking crisis and tax revenues have weakened the Greece’s economy again, thereby making it even more difficult a deal to reach.
Greece had been fastened in negotiations with its creditors, since months. Banks have been shut after the European Central Bank refused to provide emergency funding to Greece. Not just this, the withdrawals from cash machines have been restricted to €60/day. Greece missed a €1.6bn payment to the International Monetary Fund.
In order to save the Greek economy, the banks in Greece are desperately in a need of getting supported by a lender. The condition of the Greek banks has got worst to such a limit, that the banks are struggling to prove that they have sufficient assets to pledge to it as security while asking for new loans.
Who Owns the Debt of Greece?
According to the Greek government officials, rejecting the bailout terms would bolster their hand, and thus they will rapidly crack a deal for fresh funding.
Some European officials sounded placatory after the vote. Jean-Claude Juncker, the European Commission President said he would have a conference call with the ECB and prominent EU officials. German Chancellor Angela Merkel and French President Francois Hollande are likely to meet in Paris and a summit of the heads of Eurozone has been called for Tuesday.
Greece’s Syriza-led government said that the creditors presented it with an ultimatum, to put pressure on Greeks.
Some Greek voters and the opponents of Greek government complained that the question in referendum was unclear. However, the result of the referendum was 62.5%.
After the result, the former Prime Minister Antonis Samaras, (who campaigned for a “Yes”) resigned from his post.
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