Global markets wobbled Monday as Greek Prime Minister Alexis Tsipras defiantly rejected a last-minute debt proposal from creditors, raising fears the cash-strapped nation could be heading toward a default.
With tensions escalating ahead of Greece’s critical payment deadline to the International Monetary Fund (IMF), investors braced for further volatility. European stocks slipped, while safe-haven assets like bitcoin surged amid the uncertainty.
Key Developments:
Tsipras’ Hardline Stance: The Greek leader accused creditors of “blackmail” and refused their latest terms, deepening the deadlock over debt reforms.
Market Turmoil: European shares fell, and bond yields rose as the risk of a Greek exit from the eurozone (or “Grexit”) loomed larger.
Capital Controls Loom: Analysts warn that Greece may soon impose strict limits on bank withdrawals, affecting both citizens and tourists.
Referendum Chaos: Tsipras’ surprise call for a July 5 public vote on bailout terms has sparked political and economic confusion.
Expert Warnings:
Former U.S. diplomat Robert Hormats criticized the European Central Bank (ECB) for tightening liquidity, forcing Greeks into a precarious position.
Billionaire investor Wilbur Ross predicted social unrest if banks remain shut.
Some strategists argue a Grexit, while painful for Greece, wouldn’t trigger a broader eurozone collapse.
As negotiations reach a breaking point, global markets remain on high alert.
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