Greek citizens voted ‘No’ in resounding fashion in yesterday’s referendum, rejecting the set of austerity reforms that were put forward by Greece’s creditors in exchange for a bailout. By a vote of 61% ‘No’ to 39% ‘Yes’, the bailout terms were rejected and where the situation goes from here is uncertain. Greek Finance Minister Yanis Varoufakis announced his resignation this morning amid political pressure, so negotiations will now fall on new Finance Minister Euclid Tsakalotos. Emergency meetings with high ranking European officials will be held over the next few days in order to determine if any common ground can be found and a deal can reached. In the meantime, Greece announced that its banks will remain closed through Wednesday and will likely remain closed unless the European Central Bank decides to extend emergency liquidity assistance to the country. While the risks of a Greek exit from the Euro currency have increased with the results of the referendum vote (Standard & Poor’s estimates odds of over 50% for a ‘Grexit’), we continue to believe that the threat of contagion into other parts of the world is relatively contained.
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Rich Gartelmann CFP® – (630) 844-5730 firstname.lastname@example.org
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