Markets fall as Greek debt crisis escalates

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Banks in Greece will be shut all week following the European Central Bank’s decision not to extend emergency funding.

The BBC reports as Greece failed to reach a deal with its creditors over the weekend the euro has fallen, down from $1.1165 on Friday to below $1.10 at its lowest point over the last two days.

The Greek government has limited cash withdrawals to €60 (£42) a day for this week, ahead of a referendum on Greece’s bailout terms on 5 July.

Greece is due to repay €1.6bn to the International Monetary Fund tomorrow.

Greeks have been queueing to withdraw their cash over the weekend, emptying cash machines. A decree from the government says cash machines would “operate normally again by Monday noon at the latest.”

Asian markets have slid on the news, with Japan’s Nikkei down 2.88 per cent at 20,109.95.

Hong Kong’s Hang Seng Index is also down 2.73 per cent at 25,928.31 as at 8.30 this morning.

The FTSE 100 has fallen in early trading by 2.16 per cent to 6,606.76.