ECB Freezes Greek Emergency Bank Aid as Referendum Looms
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The European Central Bank froze the level of emergency aid available to Greek banks in a move that threatens to cripple the country’s financial system after a flood of ATM withdrawals.
The Governing Council agreed on Sunday to cap the amount of cash available at the level set in its previous decision on Friday, it said in a statement. One euro-area official, speaking on condition of anonymity, said the ECB views the funds as insufficient for lenders’ requirements and that Greece will need to call a bank holiday before branches open on Monday.