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Thursday 14 December 2017

euro

Banks ready for financial storm

CENTRAL banks from major economies have indicated they are ready to take steps to stabilise markets.

The countries are preparing for a possible financial storm or public panic after elections in Greece this weekend.

Britain said it would flood its banking system with cash to alleviate any sudden worsening of the crisis.

Officials from the G20 said central banks would provide liquidity if needed and prevent any credit crunch after Sunday's election.

Canada is "ready to act" if the situation takes a serious turn for the worse or there is "an external shock," a spokesman for Prime Minister Stephen Harper said.



turmoil

The Bank of Japan left policy unchanged following a two-day meeting but is expected to act if necessary after the Greek elections.

China and India are both working on contingency plans, it emerged last week.

In Europe, authorities also put in place plans for tackling any increased turmoil following the vote.

The Greek SYRIZA party has promised to tear up the country's bailout deal with the EU and the IMF if it wins on Sunday.

SYRIZA leader Alexis Tsipras said the memorandum deal with Greece's international lenders, which has helped to push the economy into a depression, would not last beyond the weekend.

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