Greek Officials Warn "Some Banks May Not Open Monday"

Tyler Durden's picture

Following Tsipras' surprise referendum decision (and subsequent pulling of proposals by Troika the institutions), Greece's bank jog has turned into a full sprint. ATM lines began to form at 2am, minutes after the announcement and now many ATMs are out of money and, as Bloomberg reports, some Greek banks are drastically limiting cash transactions. Despite all the reassurances that "banks will open Monday," two senior bank executives have warned that some lenders will not be able to open Monday (unless more emergency liquidity is released).

Many ATMs have been drained...

 

As Bloomberg reports,

Some Greek banks limiting cash transactions as hundreds of people lined up outside branches and drained cash machines after Prime Minister Alexis Tsipras called vote for July 5 that could decide whether Greece remains in euro.

 

2 senior Greek retail bank executives said as many as 500 of the country’s more than 7,000 ATMs had run out of cash as of Saturday morning, and that some lenders may not be able to open on Monday unless there was an emergency liquidity injection from the Bank of Greece.

 

Central bank spokesman said bank is making efforts to supply money to the system

 

Some banks were placing limits in daily bank note and ATM transactions. Yiota Kardogianni, manager at a Piraeus Bank branch said cash withdrawals were limited at EU3000 ($3,350) daily and ATM withdrawals at EU600. Alpha Bank had set a daily limit of EU5000 for most of its branches since last week.

As Barclays previously noted, during the same period over which Greek banks lost nearly €30 billion in deposits, banknotes in circulation jumped by some €13 billion. In short, because Greeks are increasingly prone to stuffing their euros in mattresses, a large proportion of the deposit flight has come in the form of hard currency withdrawals, meaning the Bank of Greece is forced to (literally) print billions in physical banknotes:

A large part of the deposit outflows is in the form of banknotes, whose usage has increased significantly since the end of last year (+44%). Indeed, out of a deposit outflow of €29bn (from the end of November 2014 to the end of April 2015), banknotes in circulation in Greece have increased by €13bn.

 

 

Crucially, this is not just about banks being in trouble - drained of deposits electronically - this is running out of physical banknotes, there is literally no more physical cash left in Greek banks.

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Meat Hammer's picture

By "some banks" we mean "yer fucked".

Fips_OnTheSpot's picture

as the 500 of 7000 number is at least 8 hours old. It's way worse now.

nuubee's picture

Hrm... and Bitcoin shooting up again, coincidence? Or do we actually have something in this world with real price discovery?

takeaction's picture

Your answer...Yes to coinidence...and No to Discovery.

NoDecaf's picture

The bank can NEVER run out of money, it's written right into the rules!

https://en.wikibooks.org/wiki/Monopoly/Official_Rules

 

Mae Kadoodie's picture

Is that the Referendom Vote on that ATM screen?

disabledvet's picture

This might be news to "ya'al" but the Banks aren't the problem in Greece you fucking idiots.

THE COUNTRY ITSELF IS BANKRUPT AND THERE IS NO FIAT MONIES THERE ANYMORE.

THERE IS NO GOLD BID IN THE ASK BECAUSE THERE IS NO MONIES TO BUY IT WITH.

AND THAT INCLUDES ALL OF EUROPE I MIGHT ADD.

Move along...have a nice day.

takeaction's picture

Anybody living in Greece on here??  Would love the commentary.    I guess if they were on here they would have had their cash withdrawn long ago.  People are amazing.  Just like here in the U.S.  the average person does not see the ground disappearing under them nor do they see the fence being built around them.  Oh yeah...July 1st Legal Marijuana...this should be interesting here in Oregon.

 http://www.oregonlive.com/marijuana/

.

And to top it off...101 degrees today in ORegon...with next weekend even hotter...what the hell?

NOZZLE's picture

Process another transaction? Like what dispensing a revolver with a family size pack of amunition?

tmosley's picture

Maybe all this shit will finally come tumbling down.

Bighorn_100b's picture

Real money? Who's Greece trying to fool. Real money = Gold and Silver.

Peribanu's picture

After the Ukranian Nuclear Winter, the only real money will be uncontaminated meat and vegetables. Can't eat gold or silver. PMs, like paper money, only have value within the context of a social system that gives them exchange value. I.e., they're "fiat" as much as any other form of money.

ejmoosa's picture

Think I'd be headed to the stores with my ATM card and buying things that could hold their value and be resold later...

Gold, Silver, lead, hard liquor and non-perishables come to mind...

Bighorn_100b's picture

Just checked out JM Bullion spot silver price. They say $15.86. Checked spot price of silver at Kitco news and spot price of silver is $15.75.

Anyone know why the difference in price?

Fukushima Fricassee's picture
Fukushima Fricassee (not verified) ejmoosa Jun 27, 2015 12:24 PM

You left off smokes, the prision exchange rate.

Meat Hammer's picture

Would you like another transaction?

YES

- Make a deposit (lol)
- Check balance (lmao)
- Hang all bankers

gregga777's picture

Troika = Fascist Overlords = Germany

Fukushima Fricassee's picture
Fukushima Fricassee (not verified) gregga777 Jun 27, 2015 12:51 PM

Troika = Fascist Overlords = USA Jew banker puppet (Germany/EU) .

Arnold's picture

This is a rerun in this station from last week (and the week before..).

q99x2's picture

Why would Greeks or anyone keep money in a bank. It seems absurd to me that anyone would do such a thing.

ejmoosa's picture

Future Quote of the Day:  "  I just cannot believe this happened".

umdesch4's picture

I'll say it again. A lot of people get paid by direct deposit at the end of the last Friday of the month. So the money they're all lining up to pull probably just showed up there 2 hours earlier. I'm sure that Tsipras' announcement probably made the lines slightly longer than they might otherwise be this time around, but I'm betting that most of these people have been doing the same thing every payday for a long time now.

swmnguy's picture

At least in my home state, government welfare benefits are paid by direct deposit to an account that must be set up with USBank.  The accounts carry numerous and very high fees, and low limits on transactions.  To take out $500 requires several transactions, each with a fee.  The banks end up taking a significant proportion of the benefits.

Many people I know have no choice but to take their pay by direct deposit; their employers won't write them a check or give them cash.  And most banks won't cash a check anymore for a non-accountholder.

Duude's picture

Keeping money at home isn't a good long term strategy in an economy with 25% unemployment.  Home burglaries become an issue. 

holdbuysell's picture

And to think the Elul 29 is a short 2.5 months away.

Things are heating up right on schedule.

Chuck Knoblauch's picture

A run on wealthy suburbs in Greece will be next.

Keynesians say the darndest things's picture

COMING AROUND THE WORLD SOON TO A CITY NEAR YOU!

Shibumi2's picture

"Some folks got greeked'"

Devon's picture

Ask yourself, would you keep money in the bank if you were Greek? NO, of course not. Going to be hilarious when the ECB get stuck with this bill when they default. 

European solidarity is a myth, and one that will soon be busted.

Duude's picture

The ECB has plans to print about $1.6T (USD) worth of Euros up until October 2016. What Greece owes is nothing next to that. But with default, Greece will be out of the EU likely printing worthless Drahmas and having to deal with running a country COD.  To make matters worse, they have decades worth of some of the most oppressive labor laws and decades of nationalized industries built into their economy.  It will be quite some time before Greeks turn from their ways in building a better economy. A lot of pain ahead, but you're wondering about the bill the ECB is stuck with?  LOL

Fun Facts's picture

Euros are not "real money".

They are IOU's redeemable only for more IOU's that come out of Draghi's printing press.

Sort of like the Yen and the USD.

Al Capowned's picture

Bitcoin is looking like its ready for the next bull run

sudzee's picture

If the derivative bomb goes off tomorrow banks worldwide may not open Monday. 1.4 quadrillion is more than just pocket change. Derivitives / physical cash worldwide is 1000/1. I'm glad I am flat broke at the moment otherwise I'd have to fire up my 3 wheeled scooter and get to an ATM in the rain.

Berspankme's picture

In lieu of cash I would like a 9mm pistol with ammo please. Thank you Mr Cocksucking Banker

joseJimenez's picture

great side show!! where do I buy the beer, hotdogs and banners

Fourmyle's picture

It will be interesting to see how deeply in denial Greeks are. Both by what is actually left as "deposits" and by how the vote goes. The Troika is going to demand any productive assets as tribute towards the loans they made to pay themselves ( sweet scam if you think about it ). Will enough Greeks believe in Euro solidarity and fraternity to trust their collective future to the Troika's judgement, or not.

Old friends used to tell me of having thier life savings at home in banknotes. German currency used to be considered a safe way to save. Guess how well that worked out.

When all saved wealth is just a promise and trust, it's amazing that it's only lost 99% of it's value in the last century. Maybe even more amazing that we're used to thinking this is normal and acceptable. Maybe Greece is being used to test if the people have been conditioned to the point that they can't even imagine an alternative.

Time to stock up on toilet paper ?

MASTER OF UNIVERSE's picture

Once Greek banks go down it will not be long before the rest follow suit and the entire Western World banking system crashes.

 

NOTE: There is a BIG party at Alan Greenspan's house as soon as the banks crash Worldwide. Everyone on Z/H is welcome to attend, and Mr. Greenspan is supplying the booze.

Ajax_USB_Port_Repair_Service_'s picture

I wonder if the Jade Helm exercise includes practice drills on maintaining order at ATM locations?

dogismycopilot's picture

It will be interesting to see what happens to the supply of physical cash in Greece. I think it was Martin Armstrong who predicted when this thing really goes off that cash will be hard to get as there is so much digital money in existence.. .i guess Greece will be the test case.

Debugas's picture

greece can print euros so bank run can be averted easily :)

Kozakman's picture

a large proportion of the deposit flight has come in the form of hard currency withdrawals, meaning the Bank of Greece is forced to (literally) print billions in physical banknotes:

 

Well hell, if they can print up billions of Euro's in Banknotes, whats the problem with the payment due on the 30th? Just print up a nice fresh pile of Euro's for the creditors. Problem solved....