After Athens had imposed limits on money withdrawals and banking transactions, the overall capitalization of the eurozone’s banking sector shrank €50 billion.
At the session next day, Stoxx 600 tumbled 4.4% which has been the worst fall for the recent four years. However, lending institutions of Portugal, Spain, and Italy incurred the most losses. So equities of Banco Comercial Portugues plummeted 9.1%, Banco Popular Espanol’s shares sank 6.5%, and Banca Monte dei Paschi di Siena’s equities dropped 7.2%.
Greece’s government announced temporal closure of financial institutions until July 6 and introduced control on capital flows. A maximum of €60 can be withdrawn from an account in one day.
Prime Minister Alexis Tsipras called for the referendum on austerity reforms proposed by the European Commission, European Central Bank, and International Monetary Fund. The big event is scheduled for July 5.
Greece’s debt totals over €300 billion. Eurozone’s finance ministers blame Greece’s Premier for breaking off the talks on the bailout extension.