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Saturday, 4 April 2015

Greece Drawing Up Contingency Plans To Nationalize Banks, Bring In Parallel Currency: Report


According to a report in the Telegraph, sources close to the Syriza-led government said: “We will shut down the banks and nationalize them, and then issue IOUs if we have to, and we all know what this means. What we will not do is become a protectorate of the EU.”

Greece is due to make a payment of 458 million euros ($498 million) to the International Monetary Fund (IMF) on April 9. But officials told a conference call of Euro Zone deputy finance ministers this week that the country would run out of money by then, raising the possibility of a default on the IMF loan.

Greece's leftist government was swept to power in January, pledging to renegotiate the terms of the country's international bailout, and put an end to internationally supported austerity policies that ministers have said are responsible for a “humanitarian crisis” in the country.

Interior Minister Nikos Voutsis said on Wednesday that the country would have to decide whether to pay back the IMF or pay salaries and pensions. He said it would choose the latter, Reuters reported.

Greece has submitted a list of reforms to its international creditors, which, if approved, will unlock a further tranche of bailout funds. The government is keen to increase revenue by cracking down on the tax evasion that is widespread in the country while maintaining public services.

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