Controversial Greece Finance Minister, Varoufakis Resigns

Posted by African Examiner Latest Headlines, World News Monday, July 6th, 2015

The biting economic recession in Greece Monday took another dimension as the country’s outspoken Finance Minister, Yanis Varoufakis has resigned appointment, some hours after referendum which supported his call to reject creditors’ demands for more austerity.

Speaking after the resignation, Varoufakis disclosed that his departure would be helpful in finding a solution to the country’s debt crisis.

Varoufakis revealed he has since been in clash with Eurozone Finance Ministers, thus they had wanted him to be relieved from the post.

Already, global financial markets have fallen gripped by fears that Greece was heading for an exit from the euro.

Consequently, the European Central Bank (ECB) is expected to discuss whether to raise its emergency cash support for Greek banks, which are currently running out of funds and on the brink of collapse.

As a way out, Greece’s Economy Minister, Georgios Stathakis, revealed that ECB needed to keep Greek banks alive between seven and 10 days so that negotiations could take place.

It is anticipated according to the Minister that if the ECB continued to freeze the Emergency Liquidity Assistance (ELA) at €89bn (£63bn; $98bn), the current cash withdrawal and transfer restrictions on banks of €60 per day could stay linger till Friday, without any of them collapsing.