Greece is facing financial turmoil as banks remain closed and capital controls are in place following the Syriza government’s decision to hold a referendum on bailout terms. The move has sparked widespread uncertainty, with long queues forming at ATMs across the country as citizens rush to withdraw their money. The European Central Bank (ECB) has refused to increase emergency funding to Greek banks, pushing the country towards a potential default on its €1.6bn loan repayment to the International Monetary Fund (IMF) due on Tuesday.

Prime Minister Alexis Tsipras has called for calm, stating that bank deposits are safe and wages and pensions will be paid. However, the situation remains tense with the country on the brink of financial collapse and potential exit from the eurozone. The Greek government has announced a bank holiday and imposed a €60 daily limit on cash withdrawals.

The decision to hold a referendum on July 5 has been criticised by European leaders, who view it as a reckless gamble. The vote will ask Greeks to accept or reject the austerity measures proposed by the country’s creditors, including tax increases and pension cuts. Tsipras has urged citizens to vote ‘no’, arguing that it will strengthen Greece’s negotiating position. Despite this, European Commission President Jean-Claude Juncker has warned that a ‘no’ vote could lead to Greece’s departure from the eurozone.

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