The country of Greece has been declared to be on a financial ‘war footing’’.

These harsh words were uttered by no less than the Greek Finance Minister, Yanis Varoufakis, himself.

Many Greek businesses have closed and cashflow is trickling empty as the nation edges closer to compete bankruptcy.

The nation’s banks have reported there are only 500 million euros left in cash reserves, while many businesses have said they cannot access enough money to pay the suppliers of imported goods necessary to their businesses.

Most ATMs are now out of cash and not being refilled. Banks are not expected to open until next Tuesday. Even then, many are warning they may not have enough cash to handle the expected stampede of customers desperate to withdraw their savings.

Fuel has begun to be rationed, with many stations refusing to accept credit and debit cards.

In short, the economy of Greece is nearing total paralysis. This weekend’s referendum is expected to have little effect on that fact.

The Greek Central Bank had been considering the release of emergency liquidity funds But it is uncertain whether even this would be enough to kick start the basket-case economy.

 

Despite all this, Prime Minister Alexis Tsipras and Mr Varoufakis continue to campaign against the EU creditor demands.

Mr Varoufakis said he would resign if his country voted to accept the Eurozone debt restructure. He repeated that his country was on a war footing in terms of its finance and laid the blame squarely on the EU.

Prime Minister Tsipras said a vote of ‘No’ would strengthen Greece’s bargaining position in further negotiations and did not necessarily infer a split from the Eurozone.

 

The citizens of Greece are rallying for and against the proposed bailout package, and for and against the left wing government daily.

Polls conducted ahead of the referendum say the result is too close to call.

 

Early yesterday the International Monetary Fund upped-the-ante by saying Greece would need 50 billion euros over the next three years to bring its finances under control.

Greece is in the mess it is because it cannot pay back the interest on a 1.6 billion euro loan.

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