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Grexit specter drinks Greek banks dry

Saturday, 20 June 2015 10:09 AM [ Last Update: Saturday, 20 June 2015 10:10 AM ]

Protesters hold an EU flag during a pro-European demonstration in front of the Greek parliament in Athens on June 18, 2015 (AFP photo).

Greeks have drained a total of EUR five billion (USD 5.6 billion) from the banks in Greece in a week amid the much-feared prospect of the country’s exit from the eurozone.

From EUR 1.7 to EUR two billion (USD 1.93 billion to 2.27 billion) flowed out of bank accounts in Greece on Friday, taking the week’s total to EUR five billion.

The capital outflow came a day after talks between Athens and its eurozone partners failed to unlock the remainder of the country’s international bailout.

Greek banks have been experiencing mass withdrawals of cash for quite some time as an agreement on the remaining EUR 7.2 billion keeps evading the two sides.

Athens is required by the European Commission, European Central Bank, and International Monetary Fund to enact financial reforms in exchange for the rescue money.

The Greek Central Bank has warned that the country may exit the eurozone and even the European Union unless it reaches a bailout deal with its international creditors soon.