Greece holds Independence Day parade as cash crisis deepens - as it happened
Rolling economic and financial news, including the latest developments around Greece’s bailout and the latest survey of Germany’s economy
Japanese investors are alarmed by the risk of Greece leaving the euro, and Britain leaving the European Union, reports Stephen King, HSBC’s chief economist.
Uppermost in the minds of Tokyo-based investors are Grexit and Brexit. It's political economy that increasingly matters.
Oh, and there's no surprise about the deflationary tendencies seen elsewhere in the world. In Tokyo, it's a case of "been there, done that"
Last night, economists at Deutsche Bank predicted that Greece will run out of funds on April 9th, when it must repay €460m to the IMF, without fresh funds.
They warned that tax revenues so far this year are below target (by around €1bn), and the steady withdrawal of savings is leaving Greek banks worryingly short of liquidity.
“Deposit flight has risen to about €400 million on March 18, the highest since the Feb. 20 agreement. The risk of capital controls continues to rise.”
While Greece proudly marks Independence Day, officials in Brussels will be discussing the state of the reform plan demanded by creditors, and the health of its banking sector.
The European Central Bank Governing Council will hold a weekly call to assess the Emergency Liquidity Assistance keeping Greece’s banking system afloat while euro-area finance ministry officials will have a separate discussion on the progress of the country’s economic policy program.
Without access to capital markets, or the ECB’s normal financing operations, Greek banks rely on almost 70 billion euros ($76 billion) of ELA to cover a financing shortfall exacerbated by steep deposit withdrawals.
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
And happy Independence Day to our Greek readers, at home and abroad. Ceremonies are taking place in Greece today to commemorate the events of 1821, when revolutionaries began the battle to overthrow the Ottoman Empire and claim freedom.
Congratulations to Greeks everywhere for today's celebration of National Independence. #25MarchContinue reading...