The Greek drama is approaching the long awaited climax. An emergency heads of state summit will be held on Monday, followed by the regularly scheduled summit later in the week. At the same time, the banking crisis threatens to eclipse the sovereign crisis in terms of urgency.
The accelerated flight of deposits from Greek banks, and the two extensions of ELA lending last week warn of the untenable status quo. Without that extension of ELA lending before the weekend, an ECB official expressed concern that Greek banks might not be able to open on Monday