Greece economy about to sink

Athens: Greece braced itself on Saturday ahead of a make-or-break bailout referendum as polls showed the ‘Yes’ and ‘No’ camps neck and neck and uncertainty rose over the future of the country’s battered economy. PM Alexis Tsipras got a rock-star welcome at an Athens rally on Saturday as he sought to revive support for a ‘No’ vote in a referendum called to strengthen his hand in talks with creditors.

But the recent polls suggested on Sunday’s plebiscite on Greece’s latest bailout offer from its international creditors was too close to call, with the nation of 11 million people evenly divided. EU leaders have warned that a “No” victory could cause Greece to crash out of the euro zone. But Tsipras and his closest ally finance minister Yanis Varoufakis have accused them of fear-mongering. The British business daily, quoting unidentified bankers and businessmen close to negotiations, said that depositors with over 8,000 euros in an account may be force to take a “haircut”.

Rumours that capital controls imposed by the government were leading to food and medicine shortages were spooking Greeks, as was growing uncertainty over when the banks would re-open. The Italian Prime M Matteo Renzi said his country is no longer a “companion in misfortune” of debt-wracked Greece. Renzi said Italy is not afraid of the consequences unlike during the 2011 crisis when fears were high of contagion spreading from Greek crisis to many other indebted European nations.   

Referendum result to be out by monday

Campaigns halted in Greece on Saturday, on the eve of a bailout referendum, with voters in a dead heat over whether to defy creditors and push for better repayment terms or essentially seek new political leadership to find a compromise.

Rallies and publication of new opinion polls are banned 24 hours before  referendum called by left-wing PM  Tsipras, who has promised to ease austerity after six years of recession. Sunday’s polling will start by 9.30 am (IST) and will continue till 9.30 pm (IST). The referendum results will come around 2.30 am (IST). It depends how close the gap is between ‘No’ and ‘Yes’ as to when Tsipras will cry victory.