City A.M. also understands that the cap on emergency lending to Greek banks was lifted by €700m last night. One official described it as “barely enough” to cope with the “slow-motion bank run” and said Europe’s handling of Greece’s liquidity crisis was “not blackmail, it’s water-boarding torture”.
Greek interior minister Nikos Voutzis yesterday told Germany’s Spiegel magazine that Greece would not make the payment to the International Monetary Fund if it did not receive bailout funds.
A spokesman for the Greek finance ministry told City A.M. that while progress had been made at yesterday’s meeting, it had not been enough to secure a meeting of Eurozone finance ministers next week, which could have granted the country extra funding. Greece refuses to back down on cutting pensions – which are already at low levels – and labour laws such as reducing the minimum wage.
There will be another meeting of deputy finance ministers next week, but only to discuss progress – no funds will be released.