Greece seeks new bailout terms after resounding No in referendum

Greece’s Prime Minister Alexis Tsipras says getting the financial system working again will be his top priority.

Greeks have voted by 61% to 39% to rejected bailout terms demanded by international creditors.

The banks have been closed for a week, with restrictions on cash withdrawals and controls on capital movements.

Mr Tsipras and his left-wing government campaigned for a No vote to conditions by eurozone lenders for additional loans to underwrite Greece's banking system.

“I am fully aware that the order that I was given is not for a rupture with Europe but a mandate boosting our negotiating strength to reach a sustainable deal,” Mr Tsipras said in a televised speech after the votes were counted.

“We all know that there are no easy solutions. But there are fair solutions. There are sustainable solutions.

“As of tomorrow [Monday], Greece will sit at the negotiating table. Our immediate priority is to restore the operations of banks and economic stability.

“Today, we celebrate the winning of democracy. As of tomorrow, all together, we must continue and complete the national effort to reach a deal.”

Financial market effects
Meanwhile, the ramifications of Greek opposition to paying its debts are being felt in financial markets.

The euro has dropped to around $US1.10 and ¥133.7 in currency trading on Asian markets. This is likely to lead to a further selloff in euro shares when trading resumes tonight [NZ time].

Eurozone finance ministers are unlikely to offer concessions that involve debt writeoffs and it’s unknown whether the European Central Bank will continue to support Greek banks’ liquidity.

German Vice Chancellor Sigmar Gabriel has said in an interview published today that he doubts a further bailout can be agreed.

He says Mr Tsipras has “destroyed the last bridges across which Europe and Greece could have moved towards a compromise.”

“By rejecting the rules of the eurozone…negotiations over multi-billion (aid) programmes are difficult to picture,” Mr Gabriel says.

“Tsipras and his government are leading the Greek people on to a path of bitter sacrifice and hopelessness.”