Greeks are withdrawing their savings from banks in anticipation of failed negotiations with the European Union.

19 finance iminsters are meeting in Luxembourg to find a way out of the deadlocked discussions surrounding a Greek bailout.

Euorgroup chairman Jeroen Dijsselbloem declared that a Greek exit from the European Union is not inevitable. But the citizens of Greece, it seems, are seeing the writing on the wall.

In an interview with The Guardian newpaper, university researcher Joanna Christofosaki told of how she knew of people with up to $15,000 hidden in their homes.

The cash-strapped nation has seen $300 million a day withdrawn from banks during recent weeks. On Monday this figure peaked at $580 million as fears of a Greek default on its repayments, and subsequent exit from the EU, heightened.

At the same time, Greece’s Central Bank has reported that bank deposits fell between December and April by $44 billion. They noted that failing to reach an agreement would ‘mark the beginning of a painful course’ for the nation.

Greece needs $2.64 billion (1.5 billion euros) urgently if it is to repay a debt to the IMF by the end of June. Without agreeing certain terms money to meet this repayment will be withheld, probably leading to the exit of Greece from the EU.

Greece currently owes money to the International Monetary Fund, the European Union, and the European Central Bank (collectively known as the troika).

The Greek Prime minister, Alexis Tsipras, has opposed the stringent conditions governing the release of funds on the grounds that he believes the European Union are to blame (to some degree) for his country’s current economic position. The imposition of such harsh austerity measures, then, is unfair.

Whatever happens, other members of the EU facing a similar situation to Greece will start to reconsider their position. If Greece gets an extension on their loan repayments or easing of their terms then why shouldn’t they? If Greece defaults on their debt repayments and walks away from the EU, then why shouldn’t they?

World markets are watching talks over the next few days very carefully.

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