banking

By Graeme MacKay, The Hamilton Spectator – Tuesday May 15, 2012

Greek president warned of “fatal consequences” of instability

Greece’s President Karolos Papoulias described the tragic situation of the country to the three major political leaders Antonis Samaras, Evangelos Venizelos and Alexis Tsipras but failed to convince them that a new election should be avoided.

He pointed out the imminent danger for the collapse of the Greek banking system in order to highlight the urgent need for an government.

According to the minutes of the critical meeting held on Tuesday at the Presidential Palace, Mr Papoulias had been given a full and detailed briefing by prime minister Lucas Papademos, the head of the outgoing technocratic government, Finance minister Philippos Sachinidis and director of the Bank of Greece George Provopoulos, who all suggested that “the extension of political instability will lead to fatal consequences.”

The president made a dramatic appeal to the political leaders that “being fully aware of the situation I am telling you that the danger is real. We have already lost valuable time and the absence of government is a serious risk to the financial security of the Greek people and our national existence.” Mr Papoulias said “I have been informed by the prime minister, the director of the Bank of Greece and the minister of Finance for the country’s cash position and the risk of collapse of the banking system if withdrawals of deposits from banks continue due to the insecurity of the citizens generated by the political situation.”

The Republic President added he was “extremely worried” after contacting with EU president Herman Van Rompuy and President of the European Parliament Martin Schulz on the “outlook of European economic data” and had explained “that we have a duty to agree.” (Source: The Telegraph)