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                    Greek Central Bank Warns Against Default

   by VOA News

   The Greek central bank has warned that failure to reach a bailout deal
   with its international creditors will result in recession, decline in
   income levels, and possibly even a withdrawal from the eurozone.

   The central bank issued its statement Wednesday, a day before eurozone
   finance ministers meet to discuss how to get more emergency funds to
   Greece by June 30, when Athens is obligated to make a $1.8 billion
   repayment to the International Monetary Fund.

   In its statement Wednesday the bank said a default on that payment
   could set off a chain of events that might even lead to Greece dropping
   out of the common European currency used by 18 of its neighbors.

   On Sunday, economic reform talks with international lenders in Brussels
   collapsed, leaving Greece closer than ever to default.

   Reports say the negotiations between Greece and the IMF fell apart in
   less than a hour, with both sides blaming the other.

   The banks are demanding that Greece carry out additional economic
   reforms, including more pension cuts and tax increases.

   The Greek government says it already has made enough sacrifices, saying
   the living standard for Greeks has fallen while unemployment climbed.

   European finance officials say Greece's economic reform proposals are
   incomplete and say they are losing patience with Athens.
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References

   1. http://www.voanews.com/content/greek-central-bank-warns-against-default/2825833.html