Greece overwhelmingly votes No to bailout conditions
The government is celebrating as clash with eurozone lenders intensifies.
UPDATED: Greece seeks new bailout terms after resounding No in referendum
Nearly two out of three Greeks have backed their government and rejected the terms of a debt bailout by eurozone lenders.
With 70% of the votes counted in the weekend referendum, the Noes are 61%, the interior ministry says (7.45am NZ time).
This will trigger a fresh attempt by the hardline Left government of Prime Minister Alexis Tsipras for a new bailout and loan writeoffs.
However, it could also trigger a banking collapse and Greece’s eventual departure from the eurozone if not the European Union itself.
The result means Mr Tsipras can claim the moral backing of the “Greek people” when he again attempts to water down conditions for new lending from other EU nations and the International Monetary Fund (IMF).
Greece defaulted on a payment of €1.55 billion ($2.6 billion) to the IMF last week – the first developed country to do so – and is due to repay another bond from the European Central Bank on July 20.
Total debt is estimated at €323 billion ($536 billion).
The country is already on the verge of an economic and financial collapse, with the banks closed since last Monday and controls over withdrawals and capital flows.
Investors in European stocks and bonds are gearing up for some big market moves, with volatility expected to last for a while as political wrangling continues.
High-level talks are planned in Brussels on Monday but eurozone finance ministers, led by Germany, have indicated no mood to compromise on economic and other reforms as conditions for underwriting Greece's finances.
Strategists at Goldman Sachs have estimated the Euro Stoxx 50 index of blue-chip eurozone companies could fall by as much as 10% after a “no” vote.
New Zealand financial markets will feel the first impact of the Greek rejection, with the euro dropping to $US1.0987 from $US1.1108 ahead of official trading.
Nevil Gibson
Mon, 06 Jul 2015
Mon, 06 Jul 2015
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Greece overwhelmingly votes No to bailout conditions
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