The European Central Bank, the central bank for the euro, has decided to not increase emergency funding to Greece. This decision came about because fears have been expressed concerning Greece possibly defaulting on their debts on Tuesday.
This emergency funding, used by Greek banks to give cash to depositors who want their money back, is currently capped at €89 billion ($99 billion). It is expected, in light of the decision, that capital controls will be placed on the amount of money that can be withdrawn from the banks. The decision to not increase the funding may mean that Greek banks will not open on Monday to prevent runs on the banks before the capital controls can be imposed.
This decision significantly increases the chances of Greece leaving the euro. If Greece defaults on their debts and continues on the path that they have been leading, Greece will most likely be forced by the other countries involved in the euro zone to abandon the euro in order to maintain the integrity of the currency.
Contributor: Katie Campbell