Bank of Greece (BoG) Governor Yannis Stournaras issued a stern warning that “the crisis of recent days is becoming serious” and that “liquidity in the market is being reduced at a great rate, and in danger of breaking the growth trajectory that just began and of an irrevocable harm to the Greek economy is great.” Mr. Stournaras urged deputies to consider their decision during the parliamentary elections for Greek president.
Main opposition Radical Left Coalition (SYRIZA) responded to these statements by charging Mr. Stournaras of using his capacity as BoG governor to serve the interests of the prime minister. Deputies from SYRIZA pointed to a danger-mongering aimed at affecting the markets. SYRIZA was also critical of comments made by EU Economic and Monetary Affairs Commissioner Pierre Moscovici, who said that it would be a pity to face the “Grexit” again following a meeting with Prime Minister Antonis Samaras.
All this while the Capital Group, one of the world’s largest fund houses with assets of around one trillion USD under management, has drastically reduced its funds invested in Greek stocks in the last few days, becoming the biggest seller on the Athens Stock Exchange. Sources state that the global investment giant is determined to abandon the Greek market due to the increased risks created by political instability following Mr. Samaras’ decision for a snap presidential elections that could lead to early national elections.
SYRIZA party sources state that the government is planning a “staged bank run” by increasing alarm through a number of statements designed and staging a technical exit of capital in order to maneuvre a climate of fear to serve its own interest.
SYRIZA’s announcement regarding Mr. Moscovici’s comments states: “We were particularly intrigued by Mr. Moscovici’s statements as per a Grexit when he, himself, had told Suddeutsche Zeitung that ‘Greece needs further help, if anything, in order to protect Europe’ during an interview on 8/12/2014. Then he had confessed that Greece constitutes a systematic risk. Ultimately, which of the two (statements) are true?”
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