Athens News Agency: Daily News Bulletin in English, 15-07-02

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From: The Athens News Agency at <http://www.ana.gr/>

CONTENTS

[01] Greek PM Tsipras: I'm ready to immediately seek solution after referendum

[02] Tsipras: Referendum not about whether we stay or leave the euro

[03] PM Tsipras: Referendum on July 5 doesn't constitute a coup

[04] PM Tsipras says the government continues to negotiate

[05] Tsipras urges no vote in referendum, says its not about staying in the euro

[06] Eurogroup teleconference ends, no new meeting until Greek referendum

[07] Dijsselbloem says lenders will await outcome of referendum, see 'no grounds for further talks at this point'

[08] PM Tsipras' new proposal to the institutions

[09] Greece's lenders say government's proposal is on right path, says Varoufakis

[10] Finance Minister Varoufakis posts list of reasons to vote 'no' on Sunday

[11] Gov't VP Dragasakis says referendum is part of the negotiating process

[12] All this wording to cancel a scheduled referendum is undemocratic, Labour Min Skourletis says

[13] Chancellor Merkel: No negotiations before the referendum

[14] A discussion before the referendum is pointless, Schaeuble says

[15] Athens must respect its commitments, Schaeuble tells German lawmakers

[16] Schaeuble: Greek proposal lacks clarity

[17] German FinMin: I don't know if Greece will be in a programme by July 20

[18] Die Linke's Gysi accuses German gov't of seeking to remove Greece's leftist government

[19] Greece's euro exit 'was never among the options,' Italian FinMin says

[20] Pope Francis expresses concern over Greek crisis, appeals for social justice

[21] Greece's euro exit 'was never among the options,' Italian FinMin says

[22] Greece's EU Commissioner urges 'yes' vote in upcoming referendum

[23] New Democracy accuses government of leaving Greeks without money

[24] Archbishop Ieronymos calls for unity

[25] Greece in arrears, IMF says

[26] IMF denies it is witholding payments from US tour operators to Greek hotels

[27] Foreign ministry sources criticise Spanish PM Rajoy's comments on referendum

[28] Strong message in favour of 'yes' to Europe, ND emeritus president Mitsotakis tells ANA-MPA

[29] "No" leads in citizens' preference for the referendum, according to opinion poll

[30] Biggest employers' group SEV says Greece's future at stake, supports 'Yes' vote in referendum

[31] Athens Bar Association questions next Sunday's referendum

[32] EFSF threatens to cancel loan contracts, demand immediate repayment of Greek loans

[33] Payment of pensions carried out smoothly, Hellenic Bank Association president says

[34] Social Insurance sec' general: Acute liquidity problem

[35] Greek PMI fell to 46.9 points in June

[36] Greek banks reduced number of branches in 2014, ECB report

[37] Thousands of Greeks rally in favour of 'Yes' vote in upcoming referendum

[38] Mostly fair on Thursday

[39] The Wednesday edition of Athens' dailies at a glance Politics

[01] Greek PM Tsipras: I'm ready to immediately seek solution after referendum

Even more importantly, he said he was ready to restart negotiations with creditors for a viable deal immediately after Sunday's referendum.

While insisting that the referendum does not affect Greece's membership in the common currency, he also reiterated his call for a "no" vote by Greek voters, a "no" to the question of whether citizens approve or disapprove of the last proposal made by creditors to the Greek government last week.

Tsipras said his government wants a viable solution and not an agreement that means continued pension cuts, for instance, which he said characterized the last proposal by creditors.

Additionally, in a bid to calm the Greek population amid a week that began with a week-long bank holiday and capital controls, Tsipras cited the emergence of improved terms this week provided by creditors, with repeated Eurogroup teleconferences convened to examine the Greek issue on Monday and Tuesday.

"If there's a positive result (vis-a-vis the creditors), we will respond immediately; the Greek government will remain at the table on Monday after the referendum."

Additionally, Tsipras forcefully defended his decision to call the referendum, saying it was a supreme expression of democracy, while pointing to similar plebiscites in the past in France and Ireland on European issues, pointing out that a "no" vote in Ireland led to a second referendum with improved terms.

"Unfortunately, for Greece other criteria were used," he said.

In continuing his address, he blamed "extreme conservative" circles for causing a "strangulation" of Greek banks this week, saying the same circles merely shifted their "blackmail" of the Greek government onto the backs of ordinary citizens

"We saw shameful images, because we wanted the people to have the last word," he said, referring to repeatedly shown television images of people, many of whom are elderly, lining up outside ATMs in Greece's major cities.

He reminded that the government made sure pensions were paid on time this week.

"Democracy has no impasses. I know very well that the sirens of disaster are widespread; calling for a 'yes' vote to creditors' demands means a 'yes to everything' ... 'no' is not only a slogan, it's a decisive step towards a better agreement after Sunday's result; a clear choice for how we live the next day. 'No' means dignity and a solution to debt."

He also qualified that a "no" vote translates into strong pressure for a fair social agreement, one that means that "have" will pay, not "have-notes", along with a quicker return to the markets and, as he stressed, reforms that will punish the corruption in the country and ameliorate what he called a "humanitarian crisis" in the country.

[02] Tsipras: Referendum not about whether we stay or leave the euro

He called on Greek people to vote 'no' saying it representing the people's clear choice on how they want to live on the day after, and a return to values in Europe, as well as strong pressure for a sustainable and fairer agreement.

[03] PM Tsipras: Referendum on July 5 doesn't constitute a coup

Commenting on the closed banks, in a televised address to the nation, he said it is the prevalence of extreme circles which are to blame, to blackmail ordinary citizens.

Addressing pensioners, he notes that the government "fought for so many months to protect their right to a decent pension and for this reason they are now taking revenge against us."

"I have full knowledge of the difficulties [you are facing] and I pledge personally to do everything I can to make them temporary."

"The sirens of disaster are blackmailing you and asking you to say 'Yes' to everything," he noted.

Commenting on those who claim Tsipras has a hidden plan to push Greece out of Europe, Tsipras accused them of consciously spreading lies.

[04] PM Tsipras says the government continues to negotiate

He said that after the announcement of a referendum for Sunday, better proposals were tabled from the ones the country had initially been offered and that if the Eurogroup has a "positive conclusion, we will respond immediately."

[05] Tsipras urges no vote in referendum, says its not about staying in the euro

"I call on you to say no to memorandum formulas that are destroying Europe," said in a televised address to the nation, saying a 'no' vote was an obligation to history.

He also promised that wages, pensions and the savings of those that had elected not to transfer their money abroad will not be lost.

[06] Eurogroup teleconference ends, no new meeting until Greek referendum

On the Greek side, the teleconference was attended by Finance Minister Yanis Varoufakis and Alternate Minister for International Economic Relations Euclid Tsakalotos. Tsakalotos said the Eurogroup is not expected to reconvene until Sunday's referendum.

[07] Dijsselbloem says lenders will await outcome of referendum, see 'no grounds for further talks at this point'

The Eurogroup has again declined any further extension of Greece's programme and postponed any decisions until after the country holds a referendum on Sunday, Eurogroup President Jeroen Dijsselbloem told reporters on Wednesday night.

"We reaffirmed the decision of last Saturday. The political grounds, the political situation has not changed and therefore the old programme has expired last night at midnight," he said in statements after eurozone finance ministers held a second conference call to discuss Greece's proposals.

Dijsselbloem said the finance ministers had simply "noted" the Greek proposals to further amend proposals by the institutions at this point.

"The main decision was that given the political situation, the rejection of the previous proposals, the referendum that will take place on Sunday and the 'no' advice of the Greek government, we see no grounds for further talks at this point," he said.

There will be no further talks in the coming days at either Eurogroup level, nor between the Greek authorities and the institutions on proposals or financial arrangements, Dijsselbloem added.

"We will simply wait the outcome of the referendum and take into account the outcome of the referendum," Dijsselbloem.

He ended by expressing sorrow for the situation "given the strong determination of the Greek people to be part of Europe and the eurozone, in which we fully support them."

[08] PM Tsipras' new proposal to the institutions

The Greek government submitted a new proposal with certain amendments to the institutions' proposal as part of the request for an extension of the expiring EFSF program and the new ESM Loan Agreement.

The new proposal aims to settle the ESM financing so that the debt becomes sustainable while emphasis is given on the growth perspective.

According to the new proposal:

low VAT on islands remains stable zero deficit clause suspended a new labour relations framework to be voted in autumn 2015

OECD toolkit measures on milk, medicine, bread and Sundays will not be implemented

ADMIE privatisation will not proceed

The letter of the Greek Prime Minister follows:

HELLENIC REPUBLIC

THE PRIME MINISTER

Athens, June 30th, 2015

To the President of the European Commission

Mr. Jean Claude Juncker

To the President of the European Central Bank

Mr. Mario Draghi

To the Managing Director of the IMF

Ms Christine Lagarde

Dear Managing Director, dear Presidents,

I am writing to inform you on the position of the Hellenic Republic towards the list of Prior Actions of the Staff Level Agreement as published on the European Commission website on June 28th 2015. The Hellenic Republic is prepared to accept this Staff Level Agreement subject to the following amendments, additions or clarifications, as part of an extension of the expiring EFSF program and the new ESM Loan Agreement for which a request was submitted today, Tuesday June 30th 2015. As you will note, our amendments are concrete and they fully respect the robustness and credibility of the design of the overall program.

1. VAT reform:

Maintain the 30% discount on islands, to be applied to the new rates.

2. Fiscal structural measures:

Gradually increase the advance payment of individual business income tax to 100 percent and phase out the preferential tax treatment for farmers (including the subsidies for excise on diesel oil) by end-2017.

Reduce the expenditure ceiling for military spending by ? 200 million in 2016 and ? 400 million in 2017 through a targeted set of actions, including a reduction in headcount and procurement.

3. Pensions:

The 2010 reform will be fully implemented but the 2012 reform (sustainability factor) will be postponed until the new legislative reform is implemented in October 2015.

EKAS will be phased-out by end-2019 but without any immediate action on the top 20% of beneficiaries.

All nuisance charges will be phased out by end-2017, starting from October 31, 2015.

4. Labour markets:

The new framework will be legislated in autumn 2015.

5. Product markets:

Immediately implement specific recommendations from OECD's toolkit 1 (tourist rentals, tourist buses, truck licenses, code of conduct for traditional foodstuff and eurocodes on building materials), toolkit 2 (beverages and petroleum products), and open the restricted professions of notaries, actuaries, and court bailiffs, liberalize the market for gyms and eliminate significant portion of nuisance charges.

Moreover, in cooperation with the OECD, implement an ambitious reform package including:

Create One-Stop-Shop (OSS) services for businesses (best practice analysis, as well as a comprehensive roadmap already prepared and completed in cooperation with the

OECD);

Conduct immediately a comprehensive competition assessment on specific sectors characterized by oligopolistic practices (e.g. construction, wholesale trade, agricultural products, media, etc.) and adopting recommendations accordingly (roadmap and timelines already prepared by the OECD);

Implement immediately a comprehensive strategy against corrupt business practices, for example in the area of public procurement procedures (roadmap and timeline already prepared by the OECD).

ADMIE will be split from the PPC into a separate legal entity under state majority ownership.

Thank you in advance for your support. I look forward to hearing from you.

Yours faithfully,

Cc : - Mr. Jeroen Dijsselbloem, Chairperson of the Board of Governors of ESM and

President of the Eurogroup

- Mr. Klaus P. Regling, Managing Director of the ESM

No plans by Greek government to propose defence spending cuts

There isn't, there hasn't been and there won't be a proposal by the Greek government to cut defence spending, the prime minister's office said on Wednesday.

[09] Greece's lenders say government's proposal is on right path, says Varoufakis

The minister made the statement after the end of the Eurogroup teleconference earlier in the evening which lasted about an hour.

[10] Finance Minister Varoufakis posts list of reasons to vote 'no' on Sunday

The six points are as follows:

Negotiations have stalled because Greece's creditors (a) refused to reduce our un-payable public debt and (b) insisted that it should be repaid 'parametrically' by the weakest members of our society, their children and their grandchildren

The IMF, the United States' government, many other governments around the globe, and most independent economists believe ? along with us ? that the debt must be restructured

The Eurogroup had previously (November 2012) conceded that the debt ought to be restructured but is refusing to commit to a debt restructure

Since the announcement of the referendum, official Europe has sent signals that they are ready to discuss debt restructuring. These signals show that official Europe too would vote NO on its own 'final' offer

Greece will stay in the euro. Deposits in Greece's banks are safe. Creditors have chosen the strategy of blackmail based on bank closures. The current impasse is due to this choice by the creditors and not by the Greek government discontinuing the negotiations or any Greek thoughts of Grexit and devaluation. Greece's place in the Eurozone and in the European Union is non-negotiable

The future demands a proud Greece within the Eurozone and at the heart of Europe. This future demands that Greeks say a big NO on Sunday, that we stay in the Euro Area, and that, with the power vested upon us by that NO, we renegotiate Greece's public debt as well as the distribution of burdens between the haves and the have nots

[11] Gov't VP Dragasakis says referendum is part of the negotiating process

He also revealed that the government sent on Tuesday a request to the IMF to defer, by its own initiative, the payment of the loan installment set for today, until November, and that the Bank of Greece has also submitted a request to the ECB to increase the cap on the emergency liquidity assistance (ELA) it provides to Greek banks.

Commenting on today's developments, Dragasakis said the government is open for negotiations adding it is seeking "a viable agreement for us but also our partners."

He said there's a need for a solution which will not be based on submission or on causing a blind rift, while he reiterated the government's position for making the country's debt sustainable.

Asked about the referendum, Dragasakis said that either the result is "No" or "Yes", Prime Minister Alexis Tsipras will symbolize the Greek people's struggle for dignity.

[12] All this wording to cancel a scheduled referendum is undemocratic, Labour Min Skourletis says

In reply to a question, Skourletis said that there are ministers who consider the possibility of not holding the referendum and added: "An agreement depends on its content and whether it gives the Greek people the possibility to vote on Sunday. Do you want to abolish democracy?"

[13] Chancellor Merkel: No negotiations before the referendum

Undoubtedly difficult days are before us but mostly for the Greek people, German Chancellor Angela Merkel stated underlining that "the door is and will be open for negotiations with the Greek government".

She clarified, however, that "there can't be negotiation for a new support programme before the referendum."

Merkel put the blame for 'unilateral', as she said, interruption of the negotiations but, referring to the referendum she reiterated that it is the Greek government's right as well as the partners' right to have their own position on the issue.

"A compromise is possible only if the advantages are more than the disadvantages" and noted that there will not be a compromise only to have a result. "Good European is not that who seeks a deal regardless of the cost" she stated adding that it will be decided later if there will be a compromise.

She reiterated that "Germany is going well in long term if Europe is going well".

Concluding her address to the German parliament, the Chancellor said that the stakes are very high -"people are watching us" she noted - but is does not refer to Europe's future which, as she said, would be set at risk if we forgot its values. "Then euro would be destroyed and Europe as well".

[14] A discussion before the referendum is pointless, Schaeuble says

A discussion before the referendum is pointless, German Finance Minister Wolfgang Schaeuble on Tuesday said adding that it is wrong to seek abroad those responsible for the Greek crisis.

"We have always been committed to the agreements and the rules. If we had all done the same, Greece would not have been in this desperate situation," Schaeuble stated and added: "The rest of Europe has absolutely no responsibility for the situation and the allegations to the contrary are diversionary moves by Greece."

He also said that he was sorry for the people in Greece and blamed the media for distorting situations.

Referring to the prospects, the German Finance minister said that he is unable to predict what will happen and reiterated that we are now in a new and difficult situation.

[15] Athens must respect its commitments, Schaeuble tells German lawmakers

German Finance Minister Wolfgang Schaeuble levelled stinging criticism at the Greek government while addressing German lawmakers on Wednesday, saying it had done nothing since it came into office. He said the situation had "worsened dramatically" under the government of Greek Prime Minister Alexis Tsipras and that the people of Greece were now "in the most difficult position".

He said the issue was for Athens to honour its commitments and pointed out that the country had been on the road to recovery, though not yet over the crisis, until the January 25 elections.

"There needs to be a minimum amount of trust," Schaeuble told German MPs, noting that within a currency union you cannot work with a government that refuses to adhere to and implement agreements.

"We do not even know if the Greek government will hold the referendum, if it is for or against it," Schaeuble said. The Greek government has to decide what it wants before new talks could start in earnest, he asserted.

Schaeuble also denied that Europeans had prevented former Greek prime minister George Papandreou from holding a referendum on the bailout terms in 2011, saying that Papandreou was stopped by his own government.

He said that they had agreed that a referendum should take place on December 6, 2011 and that the question would be framed as a decision to stay or leave the euro, adding that he lost a bet with his Spanish counterpart, who correctly predicted that it would never take place.

"At around 22:00 the meeting ended and Papandreou flew back with Mr. Venizelos. And we have the impression that it would happen that way. I lost a bet.... I bet a bottle of wine and I paid for it. Because the next day they toppled Papandreou, his own party, PASOK. That is the historic truth," Schaeuble said, addressing Die Linke.

"Please don't say in the future, without knowing, that we prevented the referendum from taking place then in Greece. No, on the contrary, we agreed with them," he said.

[16] Schaeuble: Greek proposal lacks clarity

At this moment there is no basis for serious negotiation with Greece, German Finance Minister Wolfgang Schaeuble stated and underlined that the Greek proposal lacks clarity. The Greeks must state clearly what they want, he said and noted that there was no agreement at Tuesday's Eurogroup but the Finance Ministers said that the door is open for deliberations.

He also stressed that with the expiration of the second programme, a new situation is created and whatever new programme should be included within the ESM framework.

"It is a difficult situation for Greece," he stated and predicted that the new deliberations will be held under more difficult conditions and put the blame on Greece for "its unexplicable behaviour."

Referring to Sunday's referendum, the German Finance minister reiterated that the Greeks cannot accept or reject the agreement because it does not exist anymore and did not exist whatsoever.

[17] German FinMin: I don't know if Greece will be in a programme by July 20

German Finance Minister Wolfgang Schaeuble on Wednesday said he was unable to make any prediction on what will happen in coming weeks with respect to Greece, or whether the country will have agreed to a new programme by July 20 when it must repay 3.5 billion euros to the European Central Bank (ECB).

"We are open to everything, he added but also pointed out that the situation was now "completely different" in the wake of Greece's failure to pay the IMF. Greece's programme had now expired and the political will must now be found for a completely new programme, whose conditions would be "rather different," and harder to negotiate, he said.

[18] Die Linke's Gysi accuses German gov't of seeking to remove Greece's leftist government

Addressing the German Parliament on Wednesday, Gregor Gysi of Germany's leftist 'Die Linke' group accused the German government of deliberately seeking to remove the elected Greek government.

He also defended the timing of the referendum called by Greek Prime Minister Alexis Tsipras, saying he "was given no other choice," after the ultimatum presented by the lenders.

Gysi called on German Chancellor Angela Merkel to find a solution, even at the last minute, and go down in history as the saviour and not the destroyer of Europe.

Speaking during a special session on Greece, Gysi said that the course adopted by Germany's government and the troika had failed, while the bailout was for the banks and not the citizens or the countries supposedly being bailed out.

He urged the German Chancellor to consider that a Greek exit from the euro could cause a chain reaction in the the rest of the eurozone.

[19] Greece's euro exit 'was never among the options,' Italian FinMin says

In a statement on Greece to the Italian Parliament on Wednesday, Italy's Finance Minister Pier Carlo Padoan said that the Eurogroup's aim had always been to find an agreement for sustainable growth in the country.

"Greece's exit from the euro was never one of the options," he stressed, noting that this was repeated at both summit meetings last week.

He said that negotiations with Greece got off to a delayed start because of a dearth of workable proposals from the Greek side but that significant progress had been made afterward on several issues, especially in the last weeks.

Padoan also insisted that the lenders had shown flexibility, if one compared the initial documents with that of June 27, which he said was "theoretically" the object of the upcoming referendum in Greece.

"I say theoretically because, in the mean time, the agreements are developing," he added.

[20] Pope Francis expresses concern over Greek crisis, appeals for social justice

Pope Francis on Wednesday expressed concern over the Greek crisis, especially its social implications and the impact on Greek families, urging European leaders to make "responsible decisions" in a statement released by Vatican press spokesman Federico Lombardi.

"The dignity of the human person must remain at the centre of every political and technical debate as well as in the making of responsible decisions," the statement said. He repeated an appeal for social justice in relations between Greece and the European Union, noting that "human dignity" was the primary goal.

[21] Greece's euro exit 'was never among the options,' Italian FinMin says

In a statement on Greece to the Italian Parliament on Wednesday, Italy's Finance Minister Pier Carlo Padoan said that the Eurogroup's aim had always been to find an agreement for sustainable growth in the country.

"Greece's exit from the euro was never one of the options," he stressed, noting that this was repeated at both summit meetings last week.

He said that negotiations with Greece got off to a delayed start because of a dearth of workable proposals from the Greek side but that significant progress had been made afterward on several issues, especially in the last weeks.

Padoan also insisted that the lenders had shown flexibility, if one compared the initial documents with that of June 27, which he said was "theoretically" the object of the upcoming referendum in Greece.

"I say theoretically because, in the mean time, the agreements are developing," he added.

[22] Greece's EU Commissioner urges 'yes' vote in upcoming referendum

He urged voters to cast a 'yes' vote, reaffirming that they were an "integral part of the European structure," and to restore the country's credibility and respect in Europe.

"We are called on to choose based on the country's prospects in an environment of security that will protect our national interests and open paths of prosperity and progress for the people and the nation. This can only happen within Europe," he said.

Defending the European project as a "unique achievement" of peoples that had chosen to overcome a history of past conflict, stressing that Greece's participation was a steady, longlasting guarantee of progress.

He also appealed for unity, despite the extraordinary pressures that the Greek people now had to endure, saying that it was time for the country's "political leaders to lower the party flags and address Greek citizens with calmness and sincerity."

"Whatever the democratic choice of the Greek people might be, the need is clear for a new national negotiation that will be accompanied by a new strategy for reconstructing the country. In a spirit of dynamic consensus and productive cooperation," he said.

[23] New Democracy accuses government of leaving Greeks without money

"The scenes today with the deliberate torturing of pensioners resemble countries of sub-Saharan Africa," party spokesman Costas Karagounis said. "We've reached the point where private individuals help them return home," he added, while accusing "Tsipras' state" of organizing new hirings.

Karagounis also said hospitals are "emitting a cry of distress", while the country is being blasted abroad for its lack of credibility.

"They tell us they're convening. I plead with them then: Stop convening because every time you do it, something bad happens. People are worried that a new announcement will be issued, maybe for a further cut of the minimum paid by the banks, maybe another monstrous thing," he noted.

[24] Archbishop Ieronymos calls for unity

"Above all else and everyone, there's the country. We're all united by our love for this place. The agony for its present and its future. Nothing separates us. This is why we must not allow the poison of division drip in our souls," the head of the Greek Orthodox Church said.

"We owe our children to guarantee a Greece of development and progress. A Greece which moves ahead with confidence and certainty, as a part of the flesh of the core of our common European family," added, while noting that "we shouldn't jeopardize the achievements won by this country's visionaries won. And that's non-negotiable."

[25] Greece in arrears, IMF says

"I confirm that the SDR 1.2 billion repayment (about EUR 1.5 billion) due by Greece to the IMF today has not been received. We have informed our Executive Board that Greece is now in arrears and can only receive IMF financing once the arrears are cleared.

"I can also confirm that the IMF received a request today from the Greek authorities for an extension of Greece's repayment obligation that fell due today, which will go to the IMF's Executive Board in due course."

[26] IMF denies it is witholding payments from US tour operators to Greek hotels

[27] Foreign ministry sources criticise Spanish PM Rajoy's comments on referendum

"While we are approaching [the day of] the referendum ... we would expect Spanish Prime Minister Rajoy to let the Greek people express themselves freely and avoid interventions which do not comply with European political culture and can reasonably be construed as a will to overthrow a democratically elected government," sources from the ministry said, adding that Greeks "will answer accordingly."

Earlier, Rajoy said a "No" vote means Grexit, noting that "Greece would have to other option that to leave the euro." He's the only European prime minister who spoke openly against the Greek government.

[28] Strong message in favour of 'yes' to Europe, ND emeritus president Mitsotakis tells ANA-MPA

"The people should give on Sunday's referendum, which I do not think that will be postponed or canceled, a strong message in favour of "YES" to Europe and to the euro," Mitsotakis stressed.

Those in Greece or Europe who supported Alexis Tsipras were greatly disappointed. Alexis Tsipras could not control either his party or his government. He came to power promising things impossibly and began an interminable negotiation, which cost a lot of money in the country without reaching a final result, he stated to ANA-MPA on Wednesday.

[29] "No" leads in citizens' preference for the referendum, according to opinion poll

However, the poll shows that after the banks' holiday, the 'no' percentage has declined.

According to the poll results, before the closing of the banks, 57 percent of the citizens said they would vote 'no' and 30 percent 'yes' but after the shut down the 'no' percentage fell to 46 pct while the 'yes' escalated to 37 percent. 17 percent of the citizens did not reply to the question.

Asked if they consider prime minister Alexis Tsipras' choice to call a referendum for the rejection or not of the institutions' proposal, 50 percent believes it was right and 38 percent wrong.

86 percent said they will vote, 8 percent said that it will not go to the ballots and 6 percent said that they have not decided yet.

[30] Biggest employers' group SEV says Greece's future at stake, supports 'Yes' vote in referendum

"[The referendum] will judge the future of Greece. It will judge the country's ability to stand on its feet again and avoid isolation. It will judge the security and future of every citizen and his family," the federation said.

"Conscious of our responsibility, businesses and workers who strive daily to keep the economy alive, choose YES to stability and prospects. We insist on living and creating in Greece," it noted, adding that if negotiations with the country's lenders do not lead to an agreement soon, the certain exit from the Eurozone will lead to poverty, division and misery.

SEV also warned that the closing of banks, even for a few days, and Greece's position towards the IMF create huge problems to businesses, while workers face an unprecedented ordeal.

[31] Athens Bar Association questions next Sunday's referendum

The resolution was approved with 18 votes in favour, 4 against and one who abstained. About 70 lawyers attended the meeting who were protesting for not taking a decision on the referendum.

Earlier, the representative of SYRIZA, Vasilis Papageorgiou, noted the Bar must distance itself from this issue and that the questioned posed in the referendum is clear.

Financial News

[32] EFSF threatens to cancel loan contracts, demand immediate repayment of Greek loans

The full statement issued in Luxembourg is as follows:

"The EFSF said it takes note of a public statement of the IMF that a Greek non-payment has occurred. It is the EFSF's understanding that the IMF Managing Director has informed the IMF Executive Board. This will be confirmed by a meeting of the Executive Board, expected later today. For the EFSF, this would constitute an event of default for certain EFSF loans.

The EFSF also takes note of the fact that the IMF received a request yesterday from the Greek authorities for an extension of Greece's repayment obligation that fell due yesterday. The IMF's Executive Board intends to examine this request in due course.

In line with EFSF guidelines, EFSF CEO Klaus Regling must inform the chairman of the Eurogroup Working Group and the EFSF Board of Directors today of the non-payment and propose one of the following three options: acceleration of the loan: this means that the EFSF cancels the loan contract and requests immediate repayment of the principal and interest amounts; waiver of rights: this means that the EFSF irrevocably waives its right and remedies under the loan for this specific non-payment; reservation of rights: this means that the EFSF neither accelerates the loan nor waives its right to do so, but instead reserves the right to act at a later stage.

The EFSF will coordinate its next steps very closely with the Eurogroup Working Group, where its shareholders are represented, and with the European Commission and the IMF.

The Greek non-payment has no influence on the EFSF's capacity to repay its bondholders. Investors know that EFSF bonds benefit from a very strong guarantee structure."

[33] Payment of pensions carried out smoothly, Hellenic Bank Association president says

"In the few branches of Attica and Thessaloniki with massive turnout, the problem has been addressed satisfactorily while several branches will operate until 19.00. If necessary, the banks are ready to open additional branches," Katseli added.

[34] Social Insurance sec' general: Acute liquidity problem

Asked on social security funds' liquidity, Romanias noted "There are 6 billion euros in the common capital of the Bank of Greece. The Common Capital exists to faciliate the social security funds to pay their pensions. This system did not operate these days. Irregularities of the past emerge today, at some point they must stop. The Bank of Greece can't invest this money and to not be able to give to the funds their money. It is an irregularity that continues for many years and the Bank of Greece profiteers on the funds' money and when the funds need the money can't use them. They have money and they can't use it.

[35] Greek PMI fell to 46.9 points in June

The index, compiled by Markit, remained below the 50-point level for the 10th successive month, reflecting a faster shrinking of both production and new orders by Greek manufacturers. Manufacturing production recorded the steepest monthly fall since June 2013 -reflecting limited production in all three categories (consumer, intermediate and investment goods).

Manufacturers attributed this development to an accelerated shrinking of new orders and to a weakening demand. New orders fell at the fastest rate since February 2013, remaining on a declining trend for the eight successive month.

Employment fell but a slower pace compared with the decline in production and new orders, while pending works fell steeply in June. The volume of raw materials and semi-processed goods bought by Greek manufacturers fell significantly in June at the fastest rate in the last two year, while inventories fell also in the month. Delivery times grew further in June, while purchasing costs rose reflecting higher raw materials' prices and volatility in foreign exchange rates.

Factory prices eased in June as manufacturers sought to remain competitive.

[36] Greek banks reduced number of branches in 2014, ECB report

Greek bank branches totaled 2,688 at the end of 2014, from 3,109 in 2013 and 4,008 in 2010, while their workforce fell to 45,654 at the end of last year, from 51,242 in 2013 and 63,408 in 2010.

The number of bank branches continued falling in most EU member-states to 204,000 in 2014, from 211,000 in 2013. The number of workers in European banks fell by 74,000 last year to around 2.8 million.

General News

[37] Thousands of Greeks rally in favour of 'Yes' vote in upcoming referendum

"We stay in Europe," "Greece, Europe, democracy" and "Quit!" were the main slogans chanted by demonstrators who had gathered since 19.00 on Syntagma square, in front of the Greek parliament.

During the rally, speeches were made by former Olympic weightlifting champion Pyrros Dimas, Athens mayor Giorgos Kaminis, Thessaloniki mayor Yiannis Boutaris and the president of KEDE, the union representing the local authorities, Giorgos Patoulis.

The rally ended, but a large number of people remained in the square.

Weather forecast

[38] Mostly fair on Thursday

[39] The Wednesday edition of Athens' dailies at a glance

DIMOKRATIA: Is there hope?

EFIMERIDA TON SYNTAKTON: 'No' vote leads, but percentage is reduced after the banking holiday

ELEFTHEROS TYPOS: Greece defaults ... and (Prime Minister Alexis) Tsipras is playing

ESTIA: Immeasurable national damage

ETHNOS: Zero hour

IMERISSIA: Extension to the thriller

KATHIMERINI: Default and disagreements at Maximos Mansion

KONTRA NEWS: (German Chancellor Angela) Merkel torpedoes the deal to cancel the referendum

NAFTEMPORIKI: The country is in air

RIZOSPASTIS: The government is asking for a new loan agreement - loop for the people

TA NEA: Fears for deposits haircut

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