The overall consequence would be even more negative in case of a debt relief and possibly the International Monetary Fund (IMF) is going to clash with the ECB (European Central Bank) and the Eurozone politicians, says Bruno Verstraete, Partner, Lakefield Partners.
Greek banking stocks were the worst hit with Alpha Bank, Attica Bank and Eurobank Ergasius, Bank of Piraeus and the National Bank of Greece were all trading around 30 percent lower - the daily volatility limit.
German Chancellor Angela Merkel and French President Francois Hollande, the euro zone's most powerful leaders, said Athens must move quickly if it wants to secure a cash-for-reform deal with creditors and avoid crashing out of the single currency.
Greece's ruling Syriza movement backed a call on Thursday from Prime Minister Alexis Tsipras to hold an emergency party congress as he seeks to assert his control over rebel lawmakers balking at new bailout talks.
Syriza's governing central committee early today backed a proposal by Tsipras to hold an emergency party conference in September, after the talks have been concluded. Dissenters had sought a conference earlier, pressing the government to abandon ongoing negotiations with rescue lenders.
Coeure told French daily Le Monde that all euro zone countries wanted Greece to remain in the shared currency bloc and were prepared to offer "financial solidarity" as long as Greece carried out reforms.
It is not clear how seriously the plans, attributed to former Energy Minister Panagiotis Lafazanis and former Finance Minister Yanis Varoufakis, were considered by the government and both ministers were sacked earlier this month.
Greece is preparing to reopen its stock exchange and allow international investors to take their money out of the country's listed companies after a one-month shutdown.
Gold edged up from a five-year low on Thursday as the dollar weakened, but the modest gains suggest bearish investors are still hovering in the market after an early-week rout led to bullion's deepest loss in nearly two years.
Greek Prime Minister Alexis Tsipras contained a rebellion in his left-wing Syriza party to win parliamentary approval on Thursday for a second package of reforms required to start talks on a financial rescue deal.
The debt-laden airline would mainly utilise the proceeds for maintenance of aircraft and working capital requirements, among others. This is the first time Air India is raising funds through the ECB route.
Tsipras has faced a revolt in the left-wing Syriza party over the mix of tax hikes, market reforms and spending cuts demanded by lenders but is expected to get the package through parliament with the support of pro-European opposition parties.
Greece reopened its banks and ordered billions of euros owed to international creditors to be repaid on Monday in the first signs of a return to normal after last week's deal to agree a tough new package of bailout reforms.
According to a report by Reuters, Athens is paying back 4.2 billion euros in principal and interest to the ECB and 2.05 billion euros in arrears it has owed the IMF since it stopped repaying at the end of June. It is also repaying a 500 million euro loan to the Greek central bank.
The European Central Bank increased emergency funding for Greek lenders, although capital controls will have to remain in place to avoid a run on the banks when they reopen on Monday.
The European Central Bank (ECB) has hiked its emergency lending to Greek banks, President Mario Draghi revealed on Thursday, raising hopes that lenders may be able to open their doors after more than two weeks of closures.
A secret International Monetary Fund study showed Greece needs far more debt relief than European governments have been willing to contemplate so far, as Germany heaped pressure on Athens on Tuesday to reform and win back its partners' trust.
The greenback performed well against its Japanese peer, which lost its safe-haven appeal with the worst-case-scenario of Greece exiting the euro seemingly averted.
The impact of a Greek exit will be largely sentimental as far as India is concerned as there is no direct link between Indian and European economies, says Hans Goetti, Head of Investment-Asia, Banque Internationale Ã€ Luxembourg.
The measures, which received an initial nod from European Union and International Monetary Fund officials before a meeting of euro zone finance ministers on Saturday, were passed with the support of pro-European opposition parties.
Greek Prime Minister Alexis Tsipras appealed to his party's lawmakers on Friday to back a tough reforms package after abruptly offering last-minute concessions to try to save the country from financial meltdown.
European Central Bank President Mario Draghi has voiced unprecedented doubts about the chances of rescuing Greece from bankruptcy as Greek Prime Minister Alexis Tsipras was due to put forward last-ditch reform proposals on Thursday.
In addition to the reforms Athens needs to undertake, she said, "the other leg is debt restructuring, which we believe is needed in the case of Greece for it to have debt sustainability."
Stocks were smacked hard Wednesday by concerns that China's economy will begin to feel the pain of a selloff that has erased more than 32 percent from Shanghai stocks.
INVESTMENT-CENBANK-FIREFIGHTING:Analysis - Greece and China expose limits of 'whatever it takes'"Whatever it takes," Mario Draghi's 2012 assertion about what the ECB would do to save the euro, best captures the all-powerful, self-aware central bank activism that's cosseted world markets since the banking and credit collapse hit eight years ago.