Greek crisis: Banks shut for a week as capital controls imposed - live updates

Graeme Wearden

from on 2015-06-28 22:36 (#CNMQ)

Greek banks will not open until July 7 in an attempt to avoid financial panic, after ECB capped the emergency funds keeping them running

11.36pm BST

Sam Tuck, a senior currency strategist at ANZ Bank New Zealand Ltd, has told Bloomberg that we're entering a "very very volatile" time.

"The knee-jerk reaction is for flight out of the euro and into safety. Defaulting to the IMF tomorrow looks like a certainty and when that happens there is no proposal, there is no legal mandate for Europe to bail out Greece.

There are a whole bunch of unknown unknowns."

11.32pm BST

Analysts at RBC Capital Markets confirm that traders will be racing for safety on Monday, and watching Greece very, very closely.

Here's their early take:

In the early hours of Saturday, the PM announced plans for a referendum. Events have accelerated since then. The euro is trading significantly weaker at the Asia open (spot 1.0970) and risk aversion seems likely to dominate the day ahead

As the week progresses, if polls point to a Yes vote and more clarity emerges regarding what happens after the programme expires on Tuesday, that initial market reaction may soften. The day ahead is quiet for scheduled data leaving focus squarely on Greece.

11.31pm BST

Remember, when stock market traders switched off their machines on Friday night, there was broad confidence that Saturday's eurogroup meeting might bring a Greek deal closer.

Instead, Alexis Tsipras announced his shock referendum plan as Europeans headed to bed - leaving investors watching the crisis unfold, but unable to reach. Until now.

11.19pm BST

Oh Goodness Me.

Global stock markets are just getting into gear for the new week, and it's already clear that shares are going to fall sharply on Monday morning.

BREAKING: S&P 500 E-MINI FUTURES SLIP 1.7% AT THE OPEN

ALERT: Dow futures lower by 320+ points on Greece worries; S&P futures lower by more than 40, Nasdaq fut. off 70+ http://t.co/38IXB4gB8c

10.51pm BST

10.39pm BST

Our economics editor, Larry Elliott, has written about how Greece's crisis could be even more serious than some people recognise.

He's dubbing it a "Sarajevo moment" for the eurozone - whose full consequences aren't quite apparent yet, but which are truly seismic.

A fully fledged monetary union has the means to transfer resources from one region to another. This is what happens in the US or the UK, for example, with higher taxes in areas that are doing well being redistributed to areas with slower growth and higher unemployment.

The euro, however, was constructed along different lines. Countries were allowed to join even though it was clear they would struggle to compete with the better performing nations such as Germany. A stability and growth pact designed to ensure a common set of budget controls was a poor substitute for fiscal union. From the start, it was obvious that the only mechanism for a country that ran into severe difficulties would be harsh austerity. Greece is the result of what happens when politics is allowed to override economics.

10.17pm BST

The euro is continuing to be pummelled in early trading in Asia -- it has now shed almost two cents against the US dollar.

EURUSD just jutted lower. pic.twitter.com/9NmjqDdueV

10.16pm BST

Sky's economics editor Ed Conway sums it up:

Banks shut, capital controls, limits on withdrawals, shut stock markets. And all this after the worst depression on record. Awful. #greece

10.14pm BST

Alastair Winter, chief economist at City firm Daniel Stewart, fears Greece is now certain to leave the eurozone.

He believes that Greece's creditors have been angling to trigger the formation of a government of national unity, which would accept the measures they proposed. But even if that happened, other European parliaments might not back such a deal (the Bundestag could be particularly unreceptive).

In the meantime, the Greek government is likely to run out of money to pay pensions and public sector salaries: it has already stopped paying suppliers, many of which are going bust, and businesses and individual taxpayers are withholding their dues.

In other words, Grexit is inevitable even if the timing and mechanics are far from clear and it appears that the EuroGroup et al are decreasingly uncomfortable with that outcome. How long, however, before the domino theories of other exits start to circulate?

10.08pm BST

Here's the moment that Greece officially entered the era of capital controls tonight, as Alexis Tsipras addressed the nation.

10.05pm BST

Macedonia, the Balkan state to the north of Greece, has instructed its banks to take action to protect themselves from the Greek crisis.

The central bank of Macedonia has told commercial banks to "withdraw all deposits and loans from banks situated in Greece and their branches around the world." It also asked them to take "preventative measures" to limit the flow of capital to Greece.

10.00pm BST

The rumour mill keeps turning tonight -- the Kathimerini newspaper says that the Athens stock market may also stay closed until the referendum has been held.

*ATHENS EXCHANGE SEEN CLOSING FOR AT LEAST A WEEK: KATHIMERINI

9.56pm BST

Eurozone leaders and finance ministers have been insistent recently that the world economy is better placed than in 2012 to handle the Greek debt crisis.

And it's true that the ECB does have much more tools to hand -- including the ability to buy up unlimited quantities of government bonds if a country risks loses market access (through Mario Draghi's OMT programme).

German banks' claims on Greece, which dropped to a3.9bn at the end of 2012 after having peaked at above a30bn just two years earlier, were back to a10.6bn at the end of last year.

Although at a reduced scale, Dutch and Italian banks have also seen their exposure increase over the same time period. The aggregate claims of French banks remain relatively low, compared with an exposure that was higher than a50bn five years ago.

Exposure (government and banks) to #Greece http://t.co/Sz01KJkXxR

9.52pm BST

The closure of banks for a week, and the imposition of tough ATM limits, is particularly tough on those with little spare cash to hand:

#Greece: lines outside bank ATMs much longer in less affluent areas of Athens; tho V long lines in Salonika's central Aristotelis square

9.42pm BST

Tomorrow's front pages are coming in, and Greece gets top spot in the FT (again...)

Just published: front page of the Financial Times US edition, Monday June 29 pic.twitter.com/RNfwsYSl8B

9.39pm BST

The White House has confirmed that Barack Obama weighed in on the eurozone crisis today, in a call with Angela Merkel:

US President Barack Obama and German Chancellor Angela Merkel on Sunday agreed that Greece needed to find its way back to a path of reform without exiting the eurozone, the White House said.

In a telephone call about the unfolding crisis, Obama and Merkel "agreed that it was critically important to make every effort to return to a path that will allow Greece to resume reforms and growth within the eurozone," the White House said.

9.21pm BST

Here's another queue for ATM machine in central Athens:

9.06pm BST

Greeks continue to flock to cash machines tonight, in response to tonight's announcement of capital controls.

#Greece lines are now being described as "unending" outside ATMs; islands especially bad where cash transactions trump creditcards

9.05pm BST

Reuters is reporting tonight that Greece's financial stability council recommended that ATMs should be closed on Monday, and that the a60 limit would then kick in on Tuesday.

That's according to a source. I cannot find an official announcement detailing the capital controls, I'm afraid. And a recommendation isn't necessarily enacted.

@LorcanRK senior govt politicians which I heard on greek radio in the taxi from airport saying cap to be a200

8.48pm BST

Another report that ATM limits will be pegged to a60/day -- it's a confusing picture right now.

It's official: 60 euro ATM withdrawals per day #Greece

8.36pm BST

I'd got used to not seeing riot police outside the Athens parliament.

But they're back there tonight, guarding the entrance, as hundreds of anti-austerity protesters rally in Syntagma Square

8.26pm BST

Arrivals at Athens airport tonight get an early taste of the situation in Greece:

Resending this as there is at least one other ATM with cash at athens airport out of shot. I've joined the line. pic.twitter.com/EuoIcj9afb

8.19pm BST

Over in Athens, Greece's governing Syriza party has now issued an appeal for Greeks to attend a mass rally in Syntagma Square on Monday night to say "NO" to austerity.

"On the 5th of July we will say OXI (NO) to austerity. We will say OXI to the lenders' ultimatums. We will say NO to the abolishment of democracy.

We will participate in tomorrow's rally and send a strong message of pride, hope and dignity to Greece and Europe,"

8.17pm BST

The Euro has just plunged at the start of trading in Asia, as the financial markets finally get an opportunity to react to the last 48 hours.

8.10pm BST

Mom just called. Her pension has been paid, not dad's, due tomorrow. He's listening to a60 withdrawal cap reports and is v. unhappy #Greece

8.09pm BST

Greeks will be restricted to taking out just a60 per day for the next week, and that banks won't reopen until July 7 -- two days after the referendum has been held.

#Greek fin min has announced that banks will stay closed until July 7, not 6th, and capital controls poss limited to 60 euro per day

7.56pm BST

The leader of Greece's largest opposition party has urged Alexis Tsipras to abandon his plan for a referendum.

Antonis Samaras, of New Democracy, said Tsipras should consider a national unity government instead:

"Our country needs to remain in the heart of Europe and in the euro. Mr Tsipras must continue the negotiations.

If he can't do that by himself, he should attempt a big national consensus."

7.46pm BST

Louka Katseli, the Yale-trained chairwoman of the National Bank of Greece, has also called for calm.

Speaking just before Tsipras's address, she told Skai TV that:

"These are unprecedented moments that we are living in"

7.41pm BST

A protest has taken place in Athens tonight, calling for Greece to vote NO to Sunday's referendum, and head towards the exit door from the EU.

7.33pm BST

There are also reports tonight that President Obama has weighed in, telling Angela Merkel to avoid Greece crashing out of the single currency bloc.

Widespread reports in #Greek media 2nite tt prez #Obama has called #Merkel w appeal that Greece is kept in eurozone

7.32pm BST

The US Government has been watching events in the eurozone with growing alarm.

And it has now revealed that Treasury secretary Jack Lew spoke with the IMF, Germany and France on Saturday, and urged a resolution to keep Greece in the euro area.

7.28pm BST

Le Monde journalists Adea Guillot has also spotted queues building up at a cash machine, as Greeks respond to the news that capital controls are being imposed.

#Grece tristesse..viens de faire 4 guichets 4 bques differentes..seul bque nationale fonctionne mais longue queue pic.twitter.com/u4qRcTfb5P

7.27pm BST

In these critical hours, we must remember that the only thing to fear is fear itself. #Greece

(Franklin D. Roosevelt's famous Inaugural Address in 1933, of course)

7.19pm BST

The same applies to the payment of wages and pensions--they are also guaranteed. #Greece

7.18pm BST

Tsipras's team are tweeting the key points from his speech tonight:

The recent decisions of the Eurogroup & ECB have only one objective: to attempt to stifle the will of the Greek people. #Greece

They will not succeed. The very opposite will occur: the Greek people will stand firm with even greater willfulness. #Greece

In the coming days, what's needed is patience and composure. The bank deposits of the Greek people are fully secure. #Greece

7.11pm BST

People are still queueing at Greece's cash machines tonight, reports my colleague Jon Henley in Athens.

Banks in #Greece to stay closed on Monday = Sunday evening queue at the ATM ... Some anxious faces pic.twitter.com/NNU1aPrem1

7.08pm BST

Tsipras also said he has repeated his request for a bailout extension, beyong the 30 June deadline.

That would give the ECB the right to restore emergency liquidity, he adds.

#Greek PM Alexis Tsipras in national address says "our only fear is fear itself" & reveals he has applied 4 bailout extens again

7.02pm BST

7.01pm BST

It's official, capital controls are being imposed in Greece, as the financial crisis takes an even more alarming turn tonight.

Speaking on live TV, Alexis Tsipras is saying that the Greek central bank has been forced to recommend a bank holiday and the introduction of capital controls.

.@atsipras says deposits are safe, that European blackmail will have the opposite of the intended effect.

6.53pm BST

Here's our latest news story on the unfolding financial crisis in Greece:

6.49pm BST

Journalists are gathered outside the PM's residence, to await the end of the cabinet meeting -- and presumably an announcement on capital controls from Alexis Tsipras/

Outside PM office, journalists await news as ministers hold meeting inside #greece #GReferendum #capitalcontrols pic.twitter.com/GtAqlApvai

6.48pm BST

A few photos of ministers arriving at tonight's emergency cabinet meeting:

6.45pm BST

This turn of events comes just hours after Greece's finance minister tweeted that the government opposed the 'very concept' of capital controls within a monetary union.

Capital controls within a monetary union are a contradiction in terms. The Greek government opposes the very concept.

6.31pm BST

According to the FT, Greece is planning to impose limits on bank transfers, cash machine withdrawals, cheque cashing, and early access to money stores in fixed-term deposits.

A wide range of capital controls, in other words.

Officials said the bank closure would last for several days and would be accompanied by limits yet to be announced on bank transfers abroad and withdrawals from cash machines.

The cashing of cheques would be halted and fixed term deposits would be locked down. The Athens stock exchange was also set to be closed.

6.25pm BST

The closure of Greece's banks (assuming it's confirmed) looks like a winding blow to the country's tourism sector.

It surely damages hopes that tourists could help drag the country out of recession soon.

greek banks closing down. right at the start of the tourism season

Bank holiday for #Greece while many are cancelling their planned holidays in the country: huge damage to the econ at the worst possible time

Greek tourism industry bound to be hurt by fact tourists won't be able to get cash from ATMs

6.19pm BST

The decision to keep Greece's banks closed was probably inevitable, once the European Central Bank decided this morning that it would not provide any more emergency funding (statement here)

By not raising the ELA limits, the ECB left the Greek banking sector with insufficient resources to cope if large numbers of savers tried to withdraw funds.

6.12pm BST

There are reports that the Greek banking sector could remain closed all week, until Sunday's referendum has been held.

#Greece: Capital Controls taken - Banks to remain closed for one week

6.09pm BST

The Athens stock market won't open tomorrow morning either.

Reuters: #Greek financial source says the Athens Stock Exchange will not open on Monday

6.08pm BST

Greece's finance minister Yanis Varoufakis, and central bank governor Yannis Stournaras, have told reporters that they have made a "recommendation" to the Greek government.

cabinet meeting starts at 8pm; media reporting that pm tsipras may address greek people afterwards. #Greferendum

6.04pm BST

Bloomberg is also reporting that Greece's banks won't open tomorrow:

Greece ordered its banks shut Monday to avert a financial collapse after the European Central Bank froze emergency loans to the nation's lenders.

Piraeus Bank SA Chief Executive Officer Anthimos Thomopoulos spoke to reporters after meeting the government's financial-stability panel in Athens on Sunday.

Breaking: Greek banks to remain closed Monday http://t.co/rR2gxhodGI

5.57pm BST

We're seeing news flashes that Greek banks will not open on Monday, according to the head of Piraeus Bank.

That follows today's meeting of the Greek financial stability council this afternoon, which just broke up.

After meeting of Stability Council, the chairman of Piraeus Bank says Greek banks will not open on Monday. Reuters

BREAKING - PIRAEUS BANK CEO SAYS GREECE BANKS TO BE CLOSED ON MONDAY -- BBG

#Keconomy IIIIIIIIIIII I IIIIfI^1I1/4I IfI...IIIIIIIfI I^3I^1I II^1I IIIIIIII - IIII III^1I^2III(R) IIIIIII^1IIII IIII^1III^1IfI1/4II http://t.co/TqrwumlD1O

5.49pm BST

The Greek Financial Stability Council Meeting has just ended, Reuters reports.

5.42pm BST

A Greek solidarity rally has been called for 6pm Monday evening in Trafalgar Square.

Solidarity-to-#Greece demo in #London: NO to austerity. #Greferendum Monday 6pm. Info: https://t.co/skHdWKtbYS pic.twitter.com/vAkne9eyt5

5.38pm BST

French President Francois Hollande has called a cabinet meeting for 8am BST on Monday to discuss Greece, Reuters flags up.

5.21pm BST

The British government has updated its advice to people travelling to Greece, to include a warning that cash machines might run short of funds, with little warning.

The new advice says (I've bolded up the extra line)

The currency of Greece is the euro. When travelling outside of the UK, you should take more than one means of payment with you (cash, debit card, credit card).Visitors to Greece should be aware of the possibility that banking services - including credit card processing and servicing of ATMs - throughout Greece could potentially become limited at short notice. Make sure you have enough Euros in cash to cover emergencies, unforeseen circumstances and any unexpected delays.

5.12pm BST

Ladbrokes, the betting firm, has slashed the odds of Greece voting YES in next Sunday\s referendum to just 1/3 (so you'd get a4 back for every a3 you put on).

Yesterday, when it opened the book, it was offering 2/1 on YES and only 1/3 on NO. But now, the position has been reversed:

"At first we thought the Greek public would dig their heels in, but there appears to have been a u-turn in sentiment and should the referendum go ahead a 'yes' outcome is looking more and more likely."

5.04pm BST

Greek media are reporting that Alexis Tsipras has called a cabinet meeting in an hour's time:

#Greece cabinet meeting at 8pm (GR) (via @ErtSocial) #politics #euro #ecb #ela #Greferendum

5.03pm BST

A group of UK left-leading MPs, union chiefs and charity leaders have signed a letter today calling for a debt relief conference for Greece, and an end to austerity:

It says:

We call on David Cameron to support the organisation of a European conference to agree debt cancellation for Greece and other countries that need it, informed by debt audits and funded by recovering money from the banks and financial speculators who were the real beneficiaries of bailouts.

We believe there must be an end to the enforcing of austerity policies that are causing injustice and poverty in Europe and across the world.

4.50pm BST

Failed to mentioned this earlier, sorry, but Greece's finance minister has released the text of his 'intervention' at yesterday's eurogroup.

It shows that Yanis Varoufakis tried to persuade colleagues that a referendum made sense, as well as being democratic.

Colleagues, the referendum solution is optimal for all, given the constraints we face.

Syriza's position explained; can't hold referendum on euro membership as it would "violate EU treaties and EU law" http://t.co/sPXgXBBivM

4.41pm BST

#greece commission now says all agreed final offer to include debt relief prop. it means reviving a conditional maybe from 2012. #incredible

4.38pm BST

Vodafone, the telecommunications giant, says it plans to keep operating in Greece for the long term.

A spokesman tells us:

"Vodafone has been committed to Greece for the past 20 years and plans to stay committed for the next 20 years."

4.33pm BST

JUST IN: A statement from Christine Lagarde, managing director of the International Monetary Fund, just landed in our inboxes.

"I have briefed the IMF Executive Board on the inconclusive outcome of recent discussions on Greece in Brussels. I shared my disappointment and underscored our commitment to continue to engage with the Greek authorities.

"The coming days will clearly be important. I welcome the statements of the Eurogroup and the European Central Bank to make full use of all available instruments to preserve the integrity and stability of the euro area. These statements underscore that the euro area today is in a strong position to respond to developments in a timely and effective manner, as needed.

4.27pm BST

Apparently, somewhere in that pile of bodies is the Greek finance minister and the country's central bank governor.

They must be heading into that meeting to discuss Greece's financial stability.

Scrum at Finmin as Stournaras Varoufakis confer. pic.twitter.com/rCS2cxL1Hq

4.25pm BST

The seven-page draft proposal released by the Commission don't appear to contain any clear reference to addressing Greece's debt sustainability....

...even though the accompanying statement states that this issue would have been discussed yesterday.

#greece european commission making noises about debt relief after the horse has bolted #surreal

4.14pm BST

4.04pm BST

It looks like the Commission is trying to lure Athens back to the table, or persuade the Greek people to push them there.

Pierre Moscovici has just tweeted that the door is still open to consider the latest EC proposals, which they just released.

To those who wonder what's next, 1. #Greece should stay in euro;2.The door is still open for negotiations on latest @EU_Commission proposals

"So Greece needs to come back to the negotiating table."

3.27pm BST

The European Commission has just released the latest draft proposal which the two sides were working on until Friday night, when Greece shocked the eurozone by announcing a referendum.

It has also claimed that creditors would have considered Greece's future financing needs, and debt sustainability, at Saturday's eurogroup meeting.

EU Commission says eurogroup were preparing to agree comprehensive solution when Greeks walked away. http://t.co/oJBOL9iwhD

Discussions on this text were ongoing with the Greek authorities on Friday night in view of the Eurogroup of 27 June 2015. The understanding of all parties involved was that this Eurogroup meeting should achieve a comprehensive deal for Greece, one that would have included not just the measures to be jointly agreed, but would also have addressed future financing needs and the sustainability of the Greek debt. It also included support for a Commission-led package for a new start for jobs and growth in Greece, boosting recovery of and investment in the real economy, which was discussed and endorsed by the College of Commissioners on Wednesday 24 June 2015.

In highly unusual move, EC publishes full 25 June proposal to Greece. This is what Greek people will vote on next Sun http://t.co/q5stiLcuez

3.16pm BST

Marks & Spencer has about 25 stores in Greece. This weekend, it declined to make any comment on what it might do should Greece's banks close.

Rival retailer Dixons Carphone, which owns the Kotsovolos chain in Greece, has already said it could benefit from tough times in the country which might force some of its competitors out of action.

"Obviously we don't want to see civil unrest because that's not good for business, but we've been there before and are well prepared.

3.10pm BST

Professor Karl Whelan of University College Dublin just launched a blogpost which explains why he thinks some Greek banks won't open tomorrow.

The ECB's decision to cap emergency liquidity at its current level means capital controls are now coming, he argues.

In that case, the only way the Greek banks could finance the (presumably very large) demands for withdrawals on Monday would have been to get access to additional funds from the Bank of Greece in the form of additional ELA. That will not be possible now, so most likely the banks will not open on Monday.

The statement that "ECB will work closely with Bank of Greece to maintain financial stability" is probably code for "ECB will help Greece to design a programme of capital controls".

A short post on the ECB decision. "ECB Decision Likely Means Greek Banks Stay Closed." https://t.co/InbEez9wtR

3.05pm BST

The Bank of Greece has denied that governor Yannis Stournaras has threatened to quit if capital controls aren't implemented, as has apparently been rumoured.

A BoG official told Reuters that:

"We categorically deny that Governor Stournaras threatened to resign."

3.03pm BST

The latest word is that Greece's financial stability council will start meeting at 4pm BST, or 6pm local time, to discuss the situation.

That meeting will be chaired by finance minister Varoufakis (who has already come out against capital controls this morning), and Bank of Greece governor Yannis Stournaras.

#Greece Systemic Stability Council headed by FinMin #Varoufakis convenes at 6pm (GR), according to local media. #ecb #ela #banking #banks

2.55pm BST

Dow Jones Newswires reporter Stelios Bouras is taking the mood at the cash machines too:

Some look really worried while lining up at ATM to take money, others take selfies #greece #greferendum

2.49pm BST

And here are photos of those lengthening ATM queues in Kifisia.

2.45pm BST

Across the Greek capital, our Southern Europe John Hooper spies longer queues at the cash machines:

Alarm is growing, even in affluent parts of Athens that were unaffected on Saturday. I am in well-heeled Kifisia, a northern suburb, and I just counted 78 people queuing at four ATMs.

2.43pm BST

There is a more than slightly surreal atmosphere in central Athens today, reports my colleague Jon Henley.

"Do the banks open tomorrow? What actually happens when the bailout ends, Tuesday? If the referendum's a yes, does the government go? If it's a No, will the institutions change their mind? It's just a real mess. Crazy."

"In fact it's already started happening. No one really knows what's going on, no one is really informed, but everyone's got opinions - strong opinions " That scares me."

"He's pissed them off now, especially with the referendum. Maybe he should have taken what they offered."

2.36pm BST

More reaction:

ELA freeze hurts Syriza as cap controls & reminds Greeks of scary prospects if a No. But ECB giving vote a breathing space, betting on Yes

2.31pm BST

We shouldn't underestimate the importance of this quote, from Greece's central bank governor:

"The Bank of Greece, as a member of the Eurosystem, will take all measures necessary to ensure financial stability for Greek citizens in these difficult circumstances."

Key part of @ecb statement: @YStournaras to seek cap controls. ELA ceiling + cap controls = #Greece banks survive wk pic.twitter.com/jx1uP8W0et

2.26pm BST

Karl Whelan, professor of economics at University College Dublin, fears that Greek banks will struggle to open tomorrow:

The ECB decision to cap ELA is more dramatic than people seem to think. Without an ELA extension seems unlikely Greek banks can stay open.

European Central Bank has *not* raised the amount it will lend to Greece. This signif raises the pressure on Greek banks which need cash.

Make no mistake, that's an ELA cap/freeze, and more restrictions could follow. http://t.co/T39uw7XDvJ

2.19pm BST

The European Central Bank has not taken the nuclear option of crashing the Greek banking sector today (although, as covered this morning, it wasn't really on the cards)

But by not providing any more emergency liquidity assistance, the ECB is putting huge pressure on the Greek banking sector, as top officials wonder how they will cope if many Greeks try to withdraw savings on Monday.

1.42pm BST

It's official, the European Central Bank has decided to maintain the emergency liquidity support on offer to Greece, but it has also not provided any extra help.

"We continue to work closely with the Bank of Greece and we strongly endorse the commitment of Member States in pledging to take action to address the fragilities of euro area economies."

"The Bank of Greece, as a member of the Eurosystem, will take all measures necessary to ensure financial stability for Greek citizens in these difficult circumstances."

1.33pm BST

Varoufakis also insisted that Greece needn't be forced out of the eurozone. Indeed, there's no mechanism to exit the single currency.

The euro was never designed to solve a problem such as Greek insolvency, and we've had a comedy of errors since, he adds.

1.28pm BST

BBC Radio 4 have just broadcast their interview with the Greek finance minister (live here).

Is it inevitable that restrictions will be imposed on how much money people can withdraw from banks?

I, as minister of finance, with the Bank of Greece and European Central Bank, will work out what to be done to minimise the burden on our people from Europe's refusal to grant us our basic democratic right.

Capital controls within a monetary union are a contradiction in terms. The Greek government opposes the very concept.

That Europe has failed in its duty to preserve in parallel a democratic process and a monetary union.

1.00pm BST

My colleague Jon Henley reports from Athens:

A lot of these around this morning ... #Greece pic.twitter.com/VEdht2bhaN

12.49pm BST

Things are starting to move fast.

Reuters is reporting that Greece's Financial Stability Council is due to meet this afternoon to discuss the banking situation.

Capital controls in the making? Greek financial stability council to convene at 4pm local time to discuss banking situation.

12.42pm BST

Even before Tuesday when Greece's bailout programme expires, another deadline is coming towards Alexis Tsipras's government like an express train.

The end of the month is fast approaching, and with it the payment of wages and pensions which should begin on Monday.

12.37pm BST

Heads-up: BBC Radio 4 is going to broadcast an interview with Greece's finance minister, Yanis Varoufakis, sometime after 1pm BST (3pm Athens).

In it, Greece's finance minister talks about the ECB's imminent decision on bank support, and the issue of capital controls.

#tw2 Greek finance minister @yanisvaroufakis talks about capital controls, bank, and future of euro

Greek finance min @yanisvaroufakis tells #tw2 ECB considering cutting funds to banks is appalling - if they do Europe will have failed.

12.31pm BST

Associated Press reports that some Greek cash machines have been busy again this morning, as we await the verdict of the ECB.

Worried Greeks continued lining up at ATM machines Sunday morning, the day after the Prime Minister Alexis Tsipras called for a referendum on creditors' financial proposals in return for rescue loans.

While some machines were running out of cash, others were being replenished.

12.26pm BST

A couple of photos from Athens today:

12.22pm BST

From Athens, John Hooper writes:

The European Central Bank was facing one of the most momentous decisions of its brief history on Sunday as its board members considered whether to keep providing more of the emergency lending that has kept Greek banks open despite a steady run on deposits that accelerated dramatically at the weekend.

An ECB spokesman declined to comment on reports that the board had already made up its mind to scrap the programme, known as Emergency Liquidity Assistance (ELA). But a source hinted that talks were already in progress on Sunday morning.

12.20pm BST

The European Central Bank has begun holding a conference call on whether to continue providing emergency liquidity to the Greek bank sector.

There are various rumour swirling around, so let's be cautious.

"There is a possibility of an extension," said one of the people with direct knowledge of the ongoing telephone discussion among the ECB's decision-making Governing Council, adding that a bigger 'haircut' is being discussed.

All eyes on Greek banks. This is how they were pushed to edge over last few months #Greece https://t.co/wliDSlinrR pic.twitter.com/oEwKQnKCf8

Reposting this (via Barclays) - ECB could maintain current Greek ELA this week, but increase haircuts on collateral. pic.twitter.com/ZtqxitOhnV

12.06pm BST

Greece's president has been meeting with senior political leaders today to discuss the situation, following last night's referendum vote.

Prokopis Pavlopoulos has just seen Antonis Samaras, head of the right-wing opposition New Democracy party.

samaras at start of meeting w/president pavlopoulos says his 'red line' is defending greece's position at the heart of europe. #greferendum

pavlopoulos-samaras meeting over; no statements made. president now scheduled to meet with potami's theodorakis. #greferndum

11.51am BST

Looks like there's been a translation glitch out of Austria, so have updated that earlier post:

11.36am BST

Here's the official line from Britain's government on the crisis this morning:

We urge the people of Greece to resolve the current uncertainty, and ensure economic and financial stability across Europe.

"We have taken measures to increase our economic security so we can deal with risks like this from abroad, and we continue to take steps to prepare and protect ourselves from all eventualities".

11.25am BST

One senior executive at one of Greece's largest conglomerates says her firm has taken steps to cope with the possibility of capital controls being imposed.

She told John Hooper, our Southern Europe editor, that:

"We are ready for everything....

"We have foreign banks ready to support us and enough cash to deal with payments inside and outside Greece We have ensured that, for a long period ahead, we have everything we need."

11.08am BST

Austria's finance minister, Hans Jirg Schelling, has flagged up that Greece would have to leave the European Union in order to leave the eurozone.

"Greece would have to file a request to do so. The other EU countries would have to approve the request. Only then could Greece leave the eurozone."

11.00am BST

The Foreign Office hasn't changed its advice on managing your finances when travelling to Greece.

"When travelling outside of the UK, you should take more than one means of payment with you (cash, debit card, credit card). Make sure you have enough money to cover emergencies and any unexpected delays."

10.44am BST

William Hill, the UK bookmaker, has refused to accept any more bets on Greece leaving the eurozone, after a flood of wagers on an early Grexit.

Hill's spokesman Graham Sharpe says:

'The only option people want to back at the moment is that Grexit will happen this year and we can no longer hope to balance the market so we have decided to pull the plug'

10.38am BST

French PM Manuel Valls also urged Greece to return to the negotiation table and reach a deal:

"I cannot resign myself to Greece leaving the euro zone ... We must find a solution."

10.37am BST

France's prime minister, Manuel Valls, has dropped a clear hint that the European Central Bank should keep supporting Greece's banks:

"The European Central Bank is independent, but I don't doubt it will assume its responsibilities.

I don't think it can cut off support, to put it another way."

ECB Governing Council consists of EZ's 19 national central-bank chiefs, incl Greece plus 6 on Executive Board. 2/3rd majority to rein in ELA

"The Greek people must be able to decide lucidly. If there's a negative vote, there is a real risk ...of exiting the euro zone."

10.27am BST

The BBC is reporting this morning that the European Central Bank will vote to 'turn off' Emergency Liquidity Assistance (ELA) for Greek banks at its meeting later today, but many experts are doubtful.

Economics editor Robert Peston had blogged that the ECB will conclude that it can't continue extending credit to Greek banks, given the high risk of the Greek government defaulting.

"We think the Greek government will have no choice but to announce a bank holiday on Monday, pending the introduction of capital controls."

Greece is still in a programme, until Tuesday. If ECB shuts the door on ELA before then it is intervening in a political process

The idea that the ECB is about to "switch off" Emergency Liquidity Assistance to #Greece, as per reports today, is bonkers (1/2)

Yes the ECB will possibly freeze ELA or tighten haircuts. Greek banks may not open on Mon. But after yday that was already the assumption

10.18am BST

Good morning, and welcome to our rolling coverage of the Greek debt crisis.

Europe's single currency entered the stage of rupture for the first time in its 16-year life on Saturday night when 18 governments told Greece its bailout package would be terminated within days. The country plunged towards financial collapse after its leftwing prime minister, Alexis Tsipras, abandoned negotiations and called a referendum on his lenders' terms for continuing the lifeline.

An emergency meeting of eurozone finance ministers took place in Brussels on Saturday evening without Greece for the first time since the crisis began in 2010. It turned into a crisis planning session devoted to quarantining Greece and insulating the rest of the eurozone from the impact of anticipated financial mayhem...

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