Debt Crisis in Greece Deepens, Banks to be closed for Next 6 days

Published Date : Jun 29, 2015

The top share index of England witnessed a sharp decline on Monday, June 29, 2015, as the debt crisis in Greece deepens after Athens imposed capital controls following the failure of talks with creditors, which has triggered the decline in market sentiment.

These recent events in Greece, which is a sought-after holiday destination in Europe, has affected the stocks of travel and leisure market significantly. The news of tour companies evacuating thousands of tourist, after dozens of people were murdered by a gunman at a beach hotel in Tunisia on June 26, 2015, is also pushing the market backwards.

By 0810 GMT, the blue-chip FTSE 100 index was down by 1.6 percent, standing at 6,643.21 points. The UK banking index, with a 2.2 percent drop, added to the pressure. The banks in Greece has been ordered to be closed for 6 days from Monday in order to prevent its financial system from collapsing.

The Prime Minister of Greece, Mr. Alexis Tsipras has announced a voting on July 5, 2015 to take a decision on the bailout agreement offered by creditors that whether it should be accepted or rejected.

With the mining index of UK declining almost 1 percent, the stocks of basic resources are also being negatively impacted, following the 3 percent decline on Monday in the basic resources stocks in China. Chinese shares have witnessed around 25 percent decline in the previous two weeks. China has waived off lending rates for the 4th time since November, 2014 and has decreased the reserve requirement of the banks in China, in an effort to support the economy.