Beginning of the end? Run on Greek banks hits record high

May 18, 2012 05:33

Greeks withdrew more than $900 million Monday and another $600 million Tuesday, according to the Greek Central Bank. While deposits have been steadily leaving banks since the start of the country’s debt problems in 2009, this week’s outpouring of cash reflects a new level of panic, analysts say. – USA Today


By Nikolia Apostolou and Renuka Rayasam – USA TODAY



The withdrawals in Greece follow that country’s failure to form a unity government after recent elections. A coalition of leftists insisted the country refuse to enact budget cuts agreed to by the previous government in order to qualify for billions of dollars in debt relief from Europe and the International Monetary Fund.


Some Greek fears the fight against austerity could force Greece out of the 17-member eurozone of nations that use the euro as currency and require the country to return to the drachma, the previous Greek currency that would likely be worth far less than euros.


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