Greece suspends talks till after referendum

Greece to go ahead with referendum on Sunday as talks with eurogroup frozen until its outcome

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

The Greek government announced it will go ahead with a planned referendum on the EU bailout proposal after it failed to repay its €1.5 billion debt to the International Monetary Fund (IMF) on Tuesday.

Citizens were called to decide Greeces’ future after the goverment announced on Saturday the carrying out of a referendum on Sunday, July 7.

The local Kathimerini newspaper reported that Greeks’ savings will be seriously affected in the event of a negative outcome of the referendum.

However, Prime Minister Alexis Tsipras reassured that the deposits of Greek people will not be lost.

“The public's deposits would not be lost for the sake of blackmail”, Tsipras said in a speech on Wednesday.

Greek Finance Minister Yanis Varoufakis also said Greece will engage in talks to reach a deal after the referendum is finalised while the Prime Minister called on citizens to vote “no.”

"On Monday, the creditors, the lenders will have taken the message by the Greek people... So as soon as they get this message, be sure that in a very short time there will be a response," Varoufakis said.

Banks in Greece remain closed with the wathrawal limit set at €60 per day. Some branches reopened on Wednesday to serve pensioners who lined up only to take €120 of their pension, as the limited access to funds restrict the systems’ capabilities.

Greek citizens will confront a dilemma of an unknown outcome even after the result of the referendum.

Research shows that 47.1 percent seem positive to the creditors’ proposals, whereas the 43.2 percent lean towards voting “no.”

The diverged views continue to polarise Greek society as campaigning for the referendum quickly make their way into the media.

While the “no” campaign sports the title “I vote for No because democracy can not be blackmailed,” it adds “On Sunday I vote for no because I hope and no longer fear.”

On the other hand, advertisements for the “yes” campaign strongly advice citizens not to trust the government. “Vote Yes for Greece, vote Yes for Euro,” it states.

The current situation emerges as Prime Minister Alexis Tsipras said he would accept the terms proposed by the country's creditors on the condition that two ammendments are made.

The Greek government aims at the maintance of the 30 percent VAT special discount on Greek islands and accepts the retirement age rise to 67 provided that it will be implemented in October.

TRTWorld and agencies