A Defiant Greek Resolve Set Against the Austere Terms of International Bankers
Denied an increase in Emergency Liquidity Assistance(ELA) by the European Central Bank(ECB) on Sunday, Greece shuttered its banks and most ATMs today, limiting ATM withdrawals to $67 as part of a capital controls program to limit run-on-banks, while maintaining its resolve to offer to the Greek people the choice to accepting or rejecting the terms of international bankers as a means to securing loans and dire debt service.
Greece's five-year financial saga is approaching a climax - a climax that could be unprecedented in determining future relationships between nations and bankers. And a climax that could mandate the minute retention of the sovereignty of nations over dictation of terms by international bankers as a means to gaining funding.
Negotiations of the terms to repay debt and to receive new loans between Greece and its international creditors have broken down. With no ongoing negotiations, Greece could default on a Tuesday repayment of $1.8 billion to the International Monetary Fund(IMF) and also face an expiration of a bail out deal with its creditors and losing access to $8.1 billion in rescue loans.
Denied an increase of its ELA by the ECB on Sunday, Greece has closed its banks for six days until Greeks could vote on a referendum on creditor proposals for reforms the nation could take to access blocked bail out funds. While an increase of its ELA by the ECB, could have possibly floated Greece until referendum time - supplying money to banks to replenish withdrawals to avert run-on-banks, in lieu of it, the Greek government has taken the unprecedented action to close its banks.
"It is now more than clear that this decision (by the ECB not to increase Greece's ELA) has no other aim than to blackmail the will of the Greek people and prevent the smooth democratic process of the referendum," Prime Minister Alexis Tsipras charged. "They will not succeed," he declared.
Thus, the stage has been set to test Greece's defiant resolve against the terms of international bankers. Pensioners have queued outside closed Greek banks expecting their monthly disbursements. The United States(US) Treasury has urged a solution between the parties and the European Commission chief feels "betrayed" by Greece's "egotism". Yet, the decision to accept or not to accept the terms of bankers, rests with the Greek people.