Greek PM Alexis Tsipras posted this statement on his official government website:
I am optimistic that we will soon have positive results. We all, however, need to turn a deaf ear to those spreading doom, the alarmists. There is absolutely no danger to salaries and pensions or to the banks and people’s savings. And I believe that very soon we will be able to look ahead with greater optimism. However, we need composure and determination in this final stretch.
Why do we have this strange, gut feeling that this bank holiday, three day weekend, we will see the introduction of capital controls?
We would eventually learn that Tsipras had in fact been prompted by aides to say something —anything — to avert a bank run because according to some reports, €300 million in deposits were withdrawn on Tuesday alone after Yanis Varoufakis suggested the country may consider a levy on ATM visits in order to encourage Greeks to rely on their credit cards.
Today, we got the latest read on the Greek banking sector and, sure enough, deposits fell by another €5 billion and now stand at just €133.7 billion, the lowest level since September of 2004. Greek banks have now lost €32 billion in deposits since November and are losing another €167 million every day, on average. As a reminder, Greek banks are relying on ELA to stay solvent and a missed IMF payment risks a showdown with the ECB which could decide to effectively break the banks overnight if it raises haircuts on ELA collateral or continues to refuse to lift the ELA ceiling. Here’s the situation visually: