Financial crises

The European Commission on Wednesday released its assessment on a Greek plan for the new ESM bailout program. A day after the IMF released its report on the sustainability of the Greek debt and its estimation that Greece would need an extensive write-off of its debt from EU official creditors, the EC made public its position on the Greek debt.

Greek civil servants are expected to stage a 24-hour strike on Wednesday to protest the bailout agreement, which was reached between the government in Athens and the eurozone leaders on Monday.

Greece agreed to implement strict reforms in return for a third bailout from its international creditors.

Turkey?s current account deficit widened to $3.99 billion in May, up $342 million from the same month in the previous year, the Central Bank reported on July 10.

The current account, a measure of the trade in goods and services, was at $3.65 billion a year earlier, the report said.

Bulgaria's central bank has asked local lenders to report on outgoing transfers twice a day, increasing its vigilance in view of the debt crisis in neighbouring Greece, Reuters reported on Tuesday, citing three banking sources.

With 14.59% of votes reported, the 'No' camp in Greece's bailout referendum on Sunday led at 60.24%, according to official partial national results.   

The announcement of the Referendum to take place on July 5 caused a multinational corporation to study the affects that the ‘no’ vote would have on society and the Greek economy. The company, that wishes to remain anonymous, studied all the repercussions of ‘no’.

1. The huge debt problem!

2. A map that shows Greek debt proportions compared to other countries.

3. The tragic problem of unemployment

Greece's finance minister accused creditors of trying to "terrorize" Greeks into accepting austerity, warning Europe stood to lose as much as Athens if the country is forced from the euro after a referendum on July 5 on bailout terms. 

According to the Financial Times, Greece’s battered banks are “preparing contingency plans for a possible ‘bail-in’ of bank accounts, in case the country doesn’t enter into a bailout scheme soon.

Projections for a “haircut” of Greek bank accounts vary between 27 to 55 percent if the ECB requests a return of roughly 120 billion euros funneled to Greek systemic banks as liquidity.

Such a nightmare scenario could be one of the repercussions of a possible delay in any new bailout agreement, regardless of a “yes” or “no” vote in Sunday referendum.