Painful course to euro exit
Greece's central bank has warned for the first time that the country could be on a "painful course" towards default and exit from the eurozone. It comes as the Greek government and its international creditors blamed each other for failing to reach a deal over economic reforms.
That failure is holding up the release €7.2bn in bailout funds. About €30bn was withdrawn from Greek bank deposits between October and April, the central bank added.The central bank also warned the country's economic slowdown would accelerate without a deal.
"Failure to reach an agreement would... mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country's exit from the euro area and, most likely, from the European Union," the Bank of Greece said in a report. "Striking an agreement with our partners is a historical imperative that we cannot afford to ignore."
Despite the warning, Greek shares rose 0.8% in mid-morning trade on the Greek stock exchange. The Athens benchmark index has fallen 11% since Friday, with bank shares worst affected.
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