Greek vote campaign begins amid grinding cash crisis

Pensioners wait to be allowed into the National Bank of Greece to withdraw cash

The battle for Greek votes was in full swing yesterday ahead of a crucial weekend referendum that could decide whether the country falls out of the euro. For Greeks, particularly the elderly, the daily struggle to get cash ground on in the face of massive uncertainty.
Greece’s creditors have halted any negotiations on a new financial rescue program until after the popular vote on whether to accept proposed reforms in exchange for bailout loans.
Greek Prime Minister Alexis Tsipras has staunchly advocated a “no,” saying it would put the country in a stronger negotiating position with creditors. But European officials and the Greek opposition have warned such an outcome could be tantamount to a decision to leave the euro.
Until then, the country remains in limbo, with banks mostly shut and strict cash withdrawal limits imposed until after the vote.
Crowds of elderly Greeks, some struggling with walking sticks or being held up by others, thronged the few banks opened to help pensioners without debit or credit cards withdraw at least some money.
The banks shut down on Monday to prevent remaining funds fleeing after Tsipras announced he was calling the referendum.
Greeks are now restricted to a daily withdrawals of 60 euros (USD67), although in practice this has become 50 euros for many as large numbers of ATMs have run out of 20 euro notes.
Pensioners without bank cards are being allowed to withdraw a maximum 120 euros for the week from open bank branches.
“All I know is that that we are all going crazy here,” said Anisia Kaklamanou, one of those waiting to get into a bank in central Athens. “And I don’t know what to do on Sunday: vote “yes”, vote “no”. I don’t know. All I know is that I have 120 euros to get by until whenever the banks open.”
The question on Sunday’s ballot is whether they accept or reject a reform proposal made by creditors during negotiations last week.
But that particular proposal is no longer on the table. It was amended later in the week and has now been rendered moot by the fact that Greece’s international bailout expired Tuesday. The same day, the country also became the first developed nation to miss a debt repayment to the International Monetary Fund.
The country is now seeking a different deal with its European creditors. But European officials have said they cannot negotiate with Athens until after Sunday’s vote.
The head of the eurozone finance ministers’ group, Jeroen Dijsselbloem, says it will be “incredibly difficult” to build a new bailout package for Greece if the country votes “no” in Sunday’s referendum.
He raised questions about the new government’s ability to continue talks in such a case and rejected the Greek government’s argument that it might get a stronger bargaining position in case of a ‘no’ vote.
“That suggestion is simply wrong,” Dijsselbloem told lawmakers in the Netherlands.
Some European officials have said the Greek referendum amounts to a vote on whether to stay in the euro. The Greek government says that is merely an attempt to terrorize the people into voting in favor of destructive austerity policies.
Many Greeks say they will be casting their ballots to end the budget cuts and tax increases imposed in return for bailout loans from other eurozone countries and the IMF. Elena Becatoros, Greece, AP

varoufakis says he’ll quit if greeks vote yes

Yanis Varoufakis said Greece won’t “extend and pretend” that it can pay its debts, vowing to quit as finance minister if voters don’t support him in Sunday’s referendum. With banks shuttered and Greece’s economy hobbled by capital controls, Varoufakis said in a Bloomberg Television interview in Athens that he would “rather cut my arm off” than sign a deal that fails to restructure Greece’s debt. The 54-year-old economics professor said he “will not” continue in his post if Greece endorses austerity in the plebiscite. “We desperately want to stay in the euro,” Varoufakis said. “We are going to win on Sunday.”