Greek Voter Majority Rejects Bailout Referendum

With nearly all ballots tabulated, results from the Greek referendum show voters strongly rejected the terms of an international bailout. Greece’s interior ministry posted figures of 61% voting “No” and 39% voting “Yes”. Syriza, the governing party of Greece, campaigned for a “No” to voters.

Greek Prime Minister Alexis Tsipras addressed his country on television stating, ” As of tomorrow, Greece will go back to the negotiating table and our primary priority is to reinstate the financial stability of the country.”

Germany has the most at stake in terms of losing money as a creditor. Germany has a US$ 68.2 billion direct exposure to Greek debt, followed by France at US$ 43.8 billion – far more than the IMF’s US$ 21.4 billion. Also the European Central Bank has a US$ 18.1 billion direct exposure to Greek debt.

Probability of Grexit Intensifies

Greece is suffering under the heavy pressure of capital controls. The Greek economy has shriveled about 25% over the past six years. Greek banks will encounter serious problems without a massive influx of aid from the European Central Bank.

Greek Finance Minister Resigns

On July 6, 2015, the Greek Finance Minster Yanis Varoufakis resigned.

On Varoufakis’ blog, he said, “Soon after the announcement of the referendum results, I was made aware of a certain preference by some Eurogroup participants, and assorted ‘partners’, for my… ‘absence’ from its meetings; an idea that the Prime Minister judged to be potentially helpful to him in reaching an agreement. For this reason I am leaving the Ministry of Finance today.

I consider it my duty to help Alexis Tsipras exploit, as he sees fit, the capital that the Greek people granted us through yesterday’s referendum.

And I shall wear the creditors’ loathing with pride.”

Greek PM Tweets Victory

Greek PM Twitter - July 5, 2015

Greek PM Twitter – July 5, 2015

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