Greek economy close to collapse as food and medicine run short

[brooklynite]

Source: The Guardian

Greece’s economy is on the brink of collapse after the capital controls imposed ahead of Sunday’s referendum left the country with shortages of food and drugs, the tourist industry facing a wave of cancellations and banks with barely enough money to survive the weekend.

Banks said they had a €1bn cash buffer to see them through the weekend – equal to just €90 (£64) a head for the 11 million-strong population – and would require immediate help from the European Central Bank on Monday whatever the result of the referendum, in which the two sides are running neck and neck.

Alexis Tsipras, Greece’s prime minister, was fighting for his political life on Friday night, using a rally to say that a no vote would enable him to negotiate a reform-for-debt-relief deal with the country’s creditors.

The survival of the Syriza coalition, formed just over five months ago to repudiate five years of austerity programmes, was in doubt as Greece started to suffer shortages of basic provisions, including the sale of vital drugs in pharmacies nationwide.

Read more: http://www.theguardian.com/world/2015/jul/03/greece-economy-collapse-close-food-medicine-shortage

[pinto]

1. Thanks for the update. I'm embarrassingly lacking in the history of the EU or its financial set up.

Seems a tragedy for the Greek citizens, though, if it all falls apart.

[dixiegrrrrl]

2. Greek Banks Considering a "bail-in"

Greek Banks Considering 30% Haircut On Deposits Over €8,000:

Greek banks are preparing contingency plans for a possible “bail-in” of depositors amid fears

The plans, which call for a “haircut” of at least 30 per cent on deposits above €8,000, sketch out an increasingly likely scenario for at least one bank, the sources said.

A Greek bail-in could resemble the rescue plan agreed by Cyprus in 2013, when customers’ funds were seized to shore up the banks, with a haircut imposed on uninsured deposits over €100,000.

It would be implemented as part of a recapitalisation of Greek banks that would be agreed with the country’s creditors — the European Commission, International Monetary Fund and European Central Bank.

http://www.zerohedge.com/news/2015-07-03/greek-banks-considering-30-haircut-deposits-over-%E2%82%AC8000-ft-reports

That "recapitalization" word simply means the banks coffers will be filled with depositor's money.
Depositors who have no choice what the bank does with their money, which is why the smart Greeks removed their money when they still could.

[msongs]

3. corporations who wrote the TPP have no problem with ecnomic collapse and starvation

as long as it is not them or theirs

[chapdrum]

4. You're right

Sure hope the "bail-in" doesn't get applied to any other countries, though the precedent has been set (by the One Percent).

[dixiegrrrrl]

5. It will be, when the time comes.

There are agreements already in place.
News articles about it appeared last year, under the headline of : Good News...no more bank bailouts"

Check out that phrase in Google.