Greek crisis: Chancellor George Osborne says Greece at "critical moment" after referendum

Jessica Morris
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Osborne said Britain will be affected by the Greek crisis the longer it goes on (Source: Getty)

Chancellor George Osborne has warned we're at a "critical moment" in the Greek debt crisis after the overwhelming "no" vote in the country's historic referendum last night.

"This is a critical moment in the economic crisis in Greece," he said.

"No-one should be under any illusions. The situation risks going from bad to worse. Britain will be affected the longer the Greek crisis lasts, and the worse it gets. There is no easy way out."

Read more: Osborne says no-one should underestimate the impact of a Greek exit from the Eurozone

Greece voted against accepting bailout conditions from the country's so-called "troika" of lenders in return for unblocking credit that it so desperately needs.

And while Greece's lenders have insisted they will not enter into further renegotiations, Prime Minister Alexis Tsipras has said that a "no" vote will put the Greeks in a stronger position.

Greece were forced to close the country's banks ahead of yesterday's referendum, which are yet to re-open, and imposed capital controls. Consequently there's a €60 (£38) daily limit on ATM transactions in the country.

But today Greece's deputy finance minister Dimitris Mardas said bank capital controls would last for at least two more days according to a report by the Financial Times.

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