The Greek government insisted on Friday that its banks were in a “stable” condition despite reports that savers had withdrawn billions of euros in the past week.
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The EU is calling an emergency Eurozone summit next week after Greek debt talks ended yesterday without a deal, sparking warnings of an “accident” that could push Athens out of the euro if there is no breakthrough by the end of the month.
It then owes another 3.5 billion (£2.51 billion, $3.97 billion) to the European Central Bank (ECB) on July 20.
If Greece fails to make the payment, the country risks an exit from the Eurozone and a possible exit from the European Union.
Our correspondent says a member of the ECB’s governing board was quoted as saying he couldn’t be sure that Greek banks would open on Monday, but that this comment had been “selectively leaked by delegations from other countries”.
Greece’s finance minister Yanis Varoufakis said in a blog post to clear up “disinformation on my presentation at the Eurogroup of the Greek government’s position” that Greece needed to “no doubt” adjust.
Time to seal an agreement with Greece before its bailout expires on June 30 is running out as it will also the need the approval of several national parliaments, including the Bundestag in European paymaster Germany.
Meanwhile, Greek Prime Minister Alexis Tsipras was travelling to Russian Federation to meet President Vladimir Putin, a visit that has prompted speculation that Greece could be seeking Russian loans.
With no data out in the US, investors were left to digest the news in Europe that Greece and its creditors appear to still be miles apart from one another.
Eurozone leaders have been called in for an emergency meeting in Brussels on Monday in what could be the last-ditch attempt to strike a deal before Greece runs out of cash.
And Michel Sapin, France’s finance minister, said it’s becoming a matter of urgency to find a solution to “this situation that is becoming unbearable”.
The European Central Bank (ECB) on Friday extended its lifeline to Greece’s financial system after efforts failed on Thursday to broker a deal on the country’s bailout.
Much depends now on the political decision the Eurozone leaders may take during their emergency meeting on Monday.
Relations between the creditors and the Greek government, which was elected on a promise to bring an end to the crippling austerity demanded since 2010 in return for the bailout money, have worsened significantly over the past few days, with each side blaming the other in stronger language for the impasse.
“The governor of the Bank of Greece confirms the stability of the banking system, which is fully secured by the joint actions of the Bank of Greece and the European Central bank”, the bank said in a statement.
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