Varoufakis hints at ‘parallel currency’, cites California’s past IOU scheme

Last Sunday, before capital controls were imposed, he had tweeted that this was incompatible within a monetary union

“If necessary, we will issue parallel liquidity and California-style IOU’s, in an electronic form. We should have done it a week ago,” was the quote attributed to FinMin Yanis Varoufakis on Sunday, after the victorious “no” vote.

The Telegraph disseminated the quote attributed to Varoufakis as Greek banks are expected to remain closed on Monday and with capital controls still in place — 60 euros withdrawal per account per day.

The referendum-plagued state of California issued temporary coupons to pay contractors when liquidity dried up after the Lehman crisis in 2008. On his part, Varoufakis insisted that this was not be a prelude to an exit from the eurozone, but a legal action within monetary union.

Last Sunday, before capital controls were imposed, he had tweeted that this was incompatible within a monetary union.

An emergency meeting is now set between bank representatives and BoG Gov.  Yannis Stournaras to consider options for the next banking days, as liquidity has all but dried up.

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