Chart of the Week: Crunch Time for Greece
This past Friday, Eurogroup Chief Jeroen Dijsselbloem shot down Prime Minister Alexis Tsipras’s proposal for a “bridge loan” program that would avoid Greece being shut off from funding at the end of the month, which would have given Greece and Eurogroup officials more time to renegotiate the terms of the bailout program. Under the current bailout agreement, Greece can still receive up to 7 billion euros of aid, but it must comply with further austerity measures of which the new government refuses to implement. The next showdown between the officials is an emergency meeting called this afternoon. Fears of deposit flight are accelerating, as Greek bank stocks have sunk more than 10% this week at the beginning of this week.