Greek crisis: ECB provides more emergency help as Tusk warns "no more games" - live
European Central Bank has agreed to provide more support to keep Greek banks operating until crucial eurozone meetings on Monday
- Summary: Greek banks get lifeline, till Monday
- EC president Tusk says Greece must choose deal or default
- Tsipras uses Russia speech to attack austerity
- Reuters: ECB agrees to raise liquidity cap
- Kathimerini: Greece wanted another a3.5bn
- No panic in Athens
- Introduction: Crisis ratchets up another notch
- Osborne: Time to prepare for the worst
6.08pm BST
On that note it's time to close up for the evening, and indeed the week. Thanks for all your comments, and we'll be back next week (unless anything dramatic happens later.)
5.55pm BST
Meanwhile according to Reuters, index compiler MSCI says it is monitoring investors' access to Greek equity markets. Any restrictions may lead it to change Greece's to a standalone market from emerging market. MSCI said:
Some measures available to Greek authorities to manage the economic situation, e.g., imposition of capital controls, could have a significant impact on the replicability and investability of the MSCI Greece Index and consequently the MSCI Emerging Markets Index.
5.55pm BST
Some evidence is emerging that big banks are becoming even more cautious in their dealings with Greece, writes Jill Treanor.
Morgan Stanley is said to be telling clients that while it is happy to take their orders to buy and sell stocks on the Athens stock market it is less willing to take any risks associated with settling the transactions.
5.48pm BST
Over In Athens opposition MPs say prime minister Alexis Tsipras now faces the toughest of choices - either he bites the bullet and accepts implementing a5bn worth of austerity measures or he allows Greece to go bankrupt at the end of the month. Helena Smith reports:
Ahead of a weekend of what is bound to be feverish negotiation within his party's own ranks, the Greek prime minister will soon have to make the most difficult of decisions.
"There is no good scenario," Anna Asimakopoulou, a shadow finance minister with the opposition New Democracy party told me this afternoon. "There is a bad scenario and a worst-case scenario. Either Tsipras agrees to take austerity measures worth a5bn, because that is what the Europeans are asking, or he takes Greece out of the eurozone And the problem is this. He doesn't have a mandate for either."
5.40pm BST
More from EC president Donald Tusk:
Have discussed #Greece situation with @ECB Draghi, IMF @Lagarde, @JunckerEU & @J_Dijsselbloem to prepare Euro Summit Monday
5.35pm BST
More concern from the US over the Greek crisis, as reported by Reuters:
The possibility that Greece's mounting debt woes could disrupt world financial markets and impact the U.S. economy has been a big topic of discussion at the Federal Reserve, a top Fed official said on Friday.
Though the baseline forecast is that even a Greek exit from the euro zone would not have a large spillover effect on the U.S. economy, there are concerns about the "tail risk," San Francisco Fed President John Williams said.
5.22pm BST
After another testing week for the eurozone - and further crisis talks between Greece and its partners on Monday - global markets turned in a mixed performance. The final scores showed:
5.16pm BST
The Kremlin said there was no discussion of financial aid for Athens at today's meeting between Russian president Vladimir Putin and Greek prime minister Alexis Tsipras, according to Reuters:
Asked whether financial assistance had been discussed at the meeting on the sidelines of the St Petersburg International Economic Forum, Kremlin spokesman Dmitry Peskov said: "No, no, no."
4.42pm BST
An early schedule for Monday's EU summit:
From 18.00 (central European time)- Arrival of the Heads of state or government of the Euro area (not in protocol order)
4.33pm BST
Another a1.2bn has been withdrawn from Greek banks today, according to Reuters.
That brings the total outflow for the week to a4.2bn amid growing concerns about the lack of a deal between Greece and its creditors. One banker told Reuters:
Today was a more difficult day compared to yesterday. Monday will likely be tough as well.
4.14pm BST
And more from eurozone member Slovakia on Greece. Earlier prime minister Robert Fico said his government was ready for Greece to leave the eurozone, although he would rather it didn't happen.
Now Slovakia's finance minister Peter KaA3/4imir has used his Twitter account to chip in , warning Greece to accept reality:
The #Greece window is closing here, and it's closing quite rapidly.
What has to come in the coming 72 hours is Sisyphean task on both sides to prevent ' accident'. Athens needs to move now. #Greece #eurozone
My personal preference is to reach an agreement which will help #Greece without weakening the strength and credibility of #eurozone
We are NOT sending #Greece out of the #eurozone, on the contrary. Greece, however, has to accept the reality and stop politicising
PM #Tsipras succeeded to take GR to EZ summit, but institutions need to back all with economically sustainable substance, jointly with EG
4.06pm BST
More demonstrations have been called ahead of Monday's key summit:
#Greece Syriza calls for demo "against austerity and for the country's dignity". Sunday 21st June at #syntagma. TRMT @doleross
3.42pm BST
Monday's emergency summit of EU leaders was convened yesterday by President of the European Council Donald Tusk, and in a new video he repeated the warning that time is running out for a deal and said the time for games was over.
He said the situation was getting critical, with four months of negotiations not leading to the necessary compromise.
The game of chicken needs to end and so does the blame game. This is not a game and there is no time for any games.
to make sure we all understand each other's positions and the consequences of our decisions.
We need to get rid of the illusion there will be a magic solution at the leaders level. The summit will not be a final step. There will be long detailed technical negotiations. That remains the job of finance ministers.
We are close to the point where the Greek government will have to chose between accepting what I believe is a good offer of continuing support, or head towards default. At the end of the day it can only be a Greek decision and a Greek responsibility.
President #Tusk @eucopresident on the #Euro #Summit of 22 June on #Greece http://t.co/0328lgEJlz pic.twitter.com/SAMlBHTye7
3.28pm BST
This would appear to be an obvious move, but still..
EURO ZONE MINISTERS TO DISCUSS ON MONDAY HANDLING OF GREEK DEFAULT IF NO NEW GREEK REFORM PROPOSALS ARRIVE: RTRS
3.16pm BST
Time for a quick recap.
"All those who are betting on crisis and terror scenarios will be proven wrong."
We have entered the eleventh hour of this Greek crisis and we urge the Greek government to do a deal before it is too late.
We hope for the best, but we now must be prepared for the worst.
2.43pm BST
German finance minister Wolfgang Schiuble isn't hopeful of a major breakthrough this weekend.
"We have to wait and see what and whether something happens in Greece by Monday....But I'm not sure I'll be able to announce anything sensational or new."
2.16pm BST
Extending more emergency liquidity funds to Greece is only a temporary measure, warns EC vice-president Valdis Dombrovskis.
It is very clear that to regain financial stability a clear agreement is needed on the programme, and a credible strategy needs to be presented by the Greek authorities showing how they will regain financial stability and economic growth.
2.07pm BST
Banking insiders have told the Guardian that the decision to hold an EU summit on Monday night calmed nerves on the streets today, helping preventing a bank run.
One banker explained:
"We're not observing panic because Monday's EU summit has been taken as a rather positive sign that we are moving towards a solution
Whatever that solution will be, whether long, short, comprehensive or not is another thing. But this is what the [Greek] government has wanted for some time and if it tackles the debt, which no one has wanted to battle, all the better."
#Greece the truth is that no panic at banks as Greeks almost inured now to drama after five years on the great Greek crisis train
#Greece bankers here this morning seem genuinely bemused by speculation that banks could close by Monday
2.05pm BST
In the absence of a formal announcement from the European Central Bank, there are conflicting reports on how much extra help Greek banks have just been given.
CNBC believes the ECB has raised the emergency liquidity limit by a3.3bn, pretty much what we think Athens asked for:
CNBC sources confirm that the ECB has raised the ELA for Greece by 3.3 billion euros: http://t.co/QIb6SKdJqv
Policy makers on the governing council granted a smaller rise than the a3bn increase in emergency liquidity assistance (ELA) requested by the Bank of Greece, the country's central bank. The rise is meant to cover Greek banks for today and until close of business on Monday.
ELA ceiling raised, but not by as much as requested by the Bank of Greece (a3bn), acc. to one source. Supposed to cover today and Monday.
1.56pm BST
The European Central Bank is going to reassess Greece's emergency funding programme again on Monday, says Reuters.
That means Monday will be a very crucial day indeed, give eurozone finance ministers and EU leaders will both be holding crunch meetings to discuss Greece.
1.31pm BST
Greece's prime minister, Alexis Tsipras, has just launched an attack on Europe's fixation on austerity, in a speech in St Petersburg.
As all of you are aware, we are at the moment at the centre of a storm of a whirlpool, but we live near the sea so we're not scared of the sea. We are ready to go to new seas to reach new safe ports.
The problem we are facing is deeply rooted in the process I have described. The EU should pursue its own path. The EU should go back to its initial principals of solidarity and social justice. Ensuring strict economic measures will lead us nowhere. The so-called problem of Greece is the problem of the whole European Union.
Here comes Tsipras at #SPIEF. "Why am I here, not in Brussels? I am here because I believe (Russia) has a big role to play..." In Greece?
Tsipras: "The economic centre of the planet has shifted. There are new economic forces that are playing a role."
Really, Alexis? #SPIEF "Greece still preserves the status of centre of stability in the region."
Tsipras tells Russians: "we are at the moment at the centre of a storm , but we live near the sea so we're not scared...
Tsipras tells Russians (2) .... "We are ready to go to new seas to reach new safe ports."
1.15pm BST
The ECB's decision is reassuring news for anyone heading to Greece in the days ahead, as it cuts the risk of an immediate banking crisis.
Tourists are already being advised to carry more paper money than normal. Just in case.
Andrew Brown, from Post Office Travel Money said: "Looking back to the last time that things reached a head in Greece in 2013, the short term impact was a lack of availability of cash at ATMs and a reluctance by shops and restaurants to accept credit or debit cards.
"With that in mind, we are advising customers travelling to Greece in the coming weeks to be prepared and ensure that they budget carefully, taking enough cash in euros to see them through their holiday."
Related: Holidaymakers warned to take plenty of cash to Greece
1.09pm BST
Journalists in Athens have also heard that Greek banks are getting extra emergency liquidity, to cover the deposits they have been losing.
ECB sources tell @capitalgr #Greece ELA raised, there's no problem with banks funding, and they expect a positive outcome on Monday (Summit)
ECB to up ELA for Greece but unclear how much, acc to banking source who says no prob with funding of Greek banks, expect p+ve outcome Mon.
1.00pm BST
Bloomberg confirms that the ECB has accepted Athens' request for more emergency liquidity. But again, they don't know if Greece got the full a3.5bn it asked for....
ECB SAID TO RAISE GREEK ELA CEILING
12.51pm BST
Reuters has just snapped that the ECB has raised the emergency funding cap for Greeks banks, quoting a banking source.
But they don't say how much by.....
12.36pm BST
Greek savers haven't suddenly become nervous, of course -- deposits have been falling since December (when the previous government called snap elections):
There are fears of a run on Greek banks - but it could be more of a jog: http://t.co/JFo51uYDYU pic.twitter.com/XhVQx1clEn
12.24pm BST
Analysts at Capital Economics explain that Greece really, really needs extra liquidity from the ECB.
An estimated a3bn has been taken out of the banking sector this week, including around a1bn yesterday....
With a3bn bank deposits leaving Greece this week, capital controls will be needed if #ECB doesn't increase ELA limit https://t.co/Rq6K70P40z
12.15pm BST
Newsflash: The European Central Bank has reportedly ended its call on whether to grant Greece extra emergency liquidity to help its banks stay afloat......
*EU OFFICIAL SAYS ECB ELA CALL HAS ENDED *EU OFFICIAL DECLINES TO COMMENT ON ECB GREECE ELA DECISION
12.12pm BST
The president of Cyprus Nikos Anastasiades has intervened on Greece's behalf, calling the German chancellor Angela Merkel.
"They want to ensure that Cyprus is different, that there'll be no contagion [in the event of Greece exiting the euro zone] and so have been walking a very fine line between having a natural bond with Greece and keeping on board with the rest of the euro zone."
11.57am BST
Here's the latest Greek odds from UK bookmaker Paddy Power:
@graemewearden Those odds are terrible! https://t.co/KoN3K0ZvZW
11.24am BST
Here's how Greek papers are covering the crisis:
Headlines #Greece "Last Chance for Deal" "Knife at our Throat" "SOS Greece" pic.twitter.com/qhwwmj8Ng7
11.23am BST
Awkward...
Ouch. @George_Osborne got number of eurozone countries wrong in Ecofin BSR debate. He said 18. It's 19. Greece hasn't gone yet George
11.17am BST
While we await the ECB's decision, here are some photos from inside today's meeting of European finance ministers:
11.15am BST
Angela Merkel's spokesman, Steffen Seibert, has said there is still time for a deal between Greece and its creditors.
"It's not too late for this and of course we hope that such an agreement is possible."
11.14am BST
A German finance ministry spokeswoman has denied that EU leaders could decide to impose capital controls on Greece at Monday night's emergency summit.
Capital controls are a decision for an individual country, she explained.
11.00am BST
The European Central Bank is about to begin deliberating whether to agree to Greece's request for more emergency assistance to keep the Greek banking sector running.
Related: Greek crisis: ECB meeting to decide on a3.5bn emergency funding
ECB Council to hold midday teleconference on request for more emergency assistance to Greek banks after #eurogroup deadlocks, again. @ecb
10.47am BST
It's official... eurozone finance ministers will meet again on Monday, at 3pm CET.
That will allow them to prepare the ground before eurozone leaders meet on Monday night to discuss the Greek crisis.
Additional #Eurogroup meeting at 3 pm on Monday 22 June in Brussels to prepare eurozone summit
10.33am BST
Greece's central bank has issued a statement this morning, in which it declares that the banking system remains stable.
Here's Google translation of Bank of Greece statement #Greece pic.twitter.com/6lSt07WmMw
Earlier this week, the governing Syriza party accused Stournaras, a former finance minister in the previous pro-bailout conservative led government, of fear-mongering after warning in his annual report that failure to find a deal would push Greece into uncontrollable economic collapse.
10.28am BST
Over in Athens our correspondent Helena Smith has been speaking with bankers who say while the Bank of Greece has indeed requested a cash injection from the ECB today, bank officials are far from panicked - at this point.
"If there is any panic it is illusory. We haven't seen it."
"It just doesn't make sense that when they have proclaimed an emergency EU summit to try and end this highly volatile situation banks don't open. I really don't think that is going to happen."
10.21am BST
Russia is ready to look at financial aid for Greece, according to its deputy prime minister today.
Arkady Dvorkovich, Russia' s deputy prime minister, told an audience of Russian business leaders today that Russia was ready to consider financial help - contradicting statements from the finance ministry only yesterday that the Kremlin couldn't afford to help.
"We support any decision [to resolve the Greek debt crisis] that will be proposed by Greece and our European partners. The first priority for us our investment projects and trade with Greece. If financial support is required we will look at this question."
"The priority for us is a stable Europe and a stable Greece. We will support all possible means to resolve the Greek debt crisis."
Greece, Russia sign memorandum on gas pipeline to Greece: Moscow http://t.co/G1pbxdyYTA pic.twitter.com/8bt2fKFwXp
10.16am BST
There's not too much love for Greece from fellow eurozone member Slovakia today.
"We wish for Greece to remain in the euro zone but not at any cost".
"Slovakia is prepared mentally and technically for the crisis scenario of Greece exiting the euro zone. We will insist on Greece doing its homework,"
"It is very important that talks continue and this discussion reaches a compromise solution and that compromise solution must be according to European rules."
9.58am BST
My colleague Jon Henley is in the Greek capital today. He reports that Athenians are nervous, but not hysterical about the threat of a bank run.
"I"m worried because this is now starting to get really very uncertain indeed. The government is not telling us what it will do, how it intends to solve this thing. I am making sure I have enough for the first part of next week. Just in case."
"But I don't want to take all I have out of the bank. If everyone did that, the whole banking system would collapse."
9.44am BST
Greeks friends on Twitter are keeping their spirits up:
went to the ATM this morning but someone was already there. on poros, that's a bank run! happy weekend everyone and be nice to each other.
I love this! I haven't encountered any queues at ATMs either. https://t.co/GLJHzIcHdg
9.30am BST
Greek government bond yields are dropping this morning, suggesting that traders are slightly less worried about a default.
The yield on two-year Greek debt has dropped to 28.6%, from 30.4% last night.
Markets betting on a deal as Athens has no choice amid bank run. 2yr #Greece yields 28.7%, down 150bps. pic.twitter.com/9ZWmnXpjil
9.18am BST
I'm not seeing or hearing any signs of panic at Greek banks today, despite Kathimerini's report that a1.2bn was taken out yesterday.
One bank official has told Reuters:
"There are no lines or panic, it has been a quiet and gradual phase of withdrawals.
"They are due to worries whether a deal will be clinched with the country's lenders."
8.59am BST
Reassuring news from the Athens stock market. The main ATG index has risen a little in early trading, up nearly 0.5%.
Shares in the major banks are up around 2%. That suggests investors are holding their nerve, and believe savers are doing the same....
#Greece | Athens market in positive territory: General Index 0.43%, banks 1.82% | Investors see an agreement?
8.39am BST
UK chancellor George Osborne has urged Athens to reach a deal with its lenders.
We have entered the eleventh hour of this Greek crisis and we urge the Greek government to do a deal before it is too late.
We hope for the best, but we now must be prepared for the worst.
8.27am BST
There is a total absence of panic in the European stock markets in early trading:
8.19am BST
EU finance ministers are arriving back in Luxembourg -- and sounding downbeat about Greece.
Luis Des Guindos, Spanish fin min #ECOFIN doorstep on #Greece "I'm worried.I don't know what we're going to do.We just have a few days left"
"Most likely a #eurogroup on Monday says @alexstubb of Finland. No new doc since 20 Feb" on #Greece #ECOFIN
8.05am BST
Greece's prime minister has welcomed the decision to call an emergency summit on Monday night.
"Ihe (euro zone) leaders summit on Monday is a positive development on the road toward a deal.
"All those who are betting on crisis and terror scenarios will be proven wrong.
Greek PM Tsipras: Euro Summit On Greece Is Positive Development -- RTRS -Those Betting On Crisis Will Be Proven Wrong
8.01am BST
These charts show how Greek deposit levels have fallen steadily this year, prompting the ECB to steadily provide more and more emergency liquidity.
#ECB said to plan Emergency Greek aid call amid bank run http://t.co/WBWgadIU77 #Greece #Grexit pic.twitter.com/7j08e5HIbH
7.53am BST
Greek newspaper Kathimerini reports that the Bank of Greece has asked the ECB for another a3.5bn of emergency funding, to handle the deposit flight.
It also says that a1.2bn was taken out of banks on Thursday, on top of the a2bn between Monday and Wednesday.
7.47am BST
Today's ECB session comes just two days after it extended another a1.1bn of emergency liquidity to the Greek banking sector.
But the fear is that funds are leaving banks faster than the ECB can put them in.
#grexit ecb put up 1bn+ in ELA on weds, looks like more today. stopping or starting a #bankrun?
@traynorbrussels @graemewearden After Coeure's alleged remarks I would say fuelling, since it has already started
7.35am BST
The AFP newswire has more details of the European Central Bank's emergency meeting:
The European Central Bank's decision-making governing council will hold an emergency session Friday to discuss a request from the Bank of Greece for an increase in liquidity to Greek banks, sources familiar with the matter told AFP.
The council will hold a teleconference at around midday (1000 GMT) to discuss a possible increase in the Emergency Liquidity Assistance facility, as deposit withdrawals from Greek banks have accelerated in recent days, sources said, speaking on condition of anonymity. An ECB spokesman declined to comment.
7.29am BST
Good morning.
More than five years after it began, Greece's debt crisis is rattling towards a climax after finance ministers failed to make any progress towards a deal last night.
Related: Greece faces banking crisis after eurozone meeting breaks down
#grexit top eurogroup participant tells @guardian timing of Monday summit to do with fear of bank run/collapse
Photos: Pro-EU demo in Athens tonight after dramatic day http://t.co/KDLYWrujY7 pic.twitter.com/K0ENgXg1Rr
This morning starts with four breakfast meetings: hotel, @EPP, #EIB and #Ecofin.
I've woken up this morning to the realisation that I'm still in #Luxembourg.
Guardian front page, Friday 19 June 2015: Fears over Greek banks as talks collapse in acrimony pic.twitter.com/EPSD5JX8ZX
Friday's FT front page: EU calls crisis summit after Athens bailout talks collapse #tomorrowspaperstoday #bbcpapers pic.twitter.com/IA3q30tBRx
Friday's Times front page: Greek banks on brink of collapse as savers panic #tomorrowspaperstoday #bbcpapers pic.twitter.com/SdS1OylzP2
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