Greece gets temporary lifeline for banks amid uncertainty

Greece got a temporary lifeline for its banks today to help them cope with a deposit drain in the run-up to a summit of the eurozone's 19 leaders that could determine the country's future in the euro. Uncertainty has grown after a meeting yesterday on the reforms Greece must make to get more loans ended in acrimony. Greece has a debt payment on June 30 it cannot afford and a default could eventually see it drop out of the euro.

Several European countries are now openly saying they are getting ready for such a possibility. In the streets of Athens, there were no visible signs of distress or larger than usual lines at banks or supermarkets. Officials, however, signaled an increase in withdrawals and transfers, which can also be made electronically.

An EU official said Greeks had taken about 2 billion euros (USD 2.3 billion) out of their accounts in the last three days. "Money is going out of the Greek banks faster than at any time before," said the official, who spoke only on condition of anonymity because of the sensitive nature of the situation. As a result, the European Central Bank's governing council decided today to provide more emergency credit for Greece's banks to help them cope with the situation.

A Greek banking official, who spoke only on condition of anonymity because the announcement was not made public, confirmed the decision. The official declined to give a sum. The ECB has been steadily increasing the support it allows Greek banks to draw on -- it did so just two days ago.