ECB says keeps emergency funding for Greek banks steady

Greece has asked for a delay on the payment from the European Central Bank, but such delays are rarely granted, the analysts said.

In fact, what might happen in each case is unclear.

“The “No” has not made the ECB’s life any easier”.

The government has said it will respect the verdict.

The impending cash crunch belies Greek Prime Minister Alexis Tsipras’s ambition to restore the banking system back to health after the “no” vote. But with Greece’s bailout programme now officially expired and in the absence of any new programme, the conditions for its continuation are no longer met.

The increase of the discount or haircut on some collateral used to tap funding was about 10 percent but a Greek banking source said its overall impact would be limited. “When people are trying to move money out of the country and the state is stopping that from taking place, bitcoin is the only way to move any value”, according to Adam Vaziri, a board member of the United Kingdom Digital Currency Association, as quoted by Reuters.

Varoufakis says banks will reopen Tuesday whatever the referendum’s outcome.

Greece issued a decree last week imposing capital controls and ordered banks to close after the European Central Bank (ECB) froze a vital financial lifeline following the breakdown of bailout talks between Athens and its foreign creditors. The Europeans, on the other hand, have ruled out debt relief until Greece makes its reforms. Others, such as the leaders of France and Italy, appear to be holding the door ajar for further talks.

Of course, given the circumstances, it seems likely that this haircut is an increase as Greek collateral is now probably seen as riskier.

The word “Grexit” has dominated the past months of negotiations on Greece.

Small businesses in Greece have already resorted to the use of private currencies to alleviate the liquidity crunch and continue operating in lieu of payment.

The country faces debt repayments and it is not clear how much of them it has money left to cover.

The Telegraph quotes Constantine Michalos, head of the Hellenic Chambers of Commerce, on the dire state of the system: “We are reliably informed that the cash reserves of the banks are down to €500m”. Negotiating and approving such a program will take time, while the Greek economy will be deteriorating.