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Greece in shock as banks shut after snap referendum call

John Thys / AFP | European Commission President Jean-Claude Juncker gives a press conference on Greece at the EU headquarters in Brussels on June 29, 2015

Greece plunged deeper into crisis on Monday after bailout talks between the PM Tsipras' left-wing government and foreign lenders broke down over the weekend.

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The Central Bank was forced to freeze vital funding support to Greece’s banks. As a result, Greece imposed capital controls and shut its banks to check the growing strains on its crippled financial system. There will be a daily 60 euro limit on cash withdrawals from cash machines, which will reopen on Tuesday.

The breakdown has pushed the European Union and euro zone into uncharted terrain. Financial markets reacted badly on Monday, with European bank shares down sharply on worries of contagion within the financial system.

Emotions were unusually raw among Europe's leaders on Monday. EU Commission President Jean-Claude Juncker said he felt personally betrayed and told Greeks a "no" vote would point to a euro exit.

"I will say to the Greeks who I love deeply: you mustn't commit suicide because you are afraid of death," he told a news conference.

In Greece, people lined up at cash machines and petrol pumps as the country braced itself for what could be a damaging debt default and possible exit from the euro.

(FRANCE 24 with REUTERS)

For a recap of the day's events, please see our live blog below.
 

 

 

 

Greece reels in shock as banks shut

Live Blog Greece reels in shock as banks shut

 

 

 

 

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