Greece Closes Banks, Fear of Financial Collapse


Greece has announced that banks will be closed until July 6, a day after a referendum on baliout proposals will be held. A sixty euro limit has been placed on ATM withdrawals.

Bank holidays like these are used in times of great economic stress in order to prevent bank runs. Bank runs can damage an already hurting economy and lower the amount of cash flowing in the economy.

However, international tourists will not be affected by the order. Tourism is 18% of Greece’s gross domestic product and the country attracts over twenty million visitors each year.

Greece is quickly moving towards defaulting on their loans on Tuesday. A default could lead to Greece’s exit from the euro zone, dubbed the Grexit. Leaving the euro zone would shatter the Greek economy even further as they would move to a new currency.

Although, the euro is already taking a hit itself. The euro fell 2.5% against the Japanese yen and it’s hitting a record low against the British pound.

About Tyler

Tyler is the chief media reporter for TKNN, with the news organization since its founding in November of 2010. He has previously served as chief political reporter and chief political anchor for TKNN.

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