Greece will close its banks on Monday to try to avert financial collapse. The anticipated closure is expected to last about a week. This temporary decision was made along with keeping the stock market closed on Monday after the European Central Bank said it would not expand an emergency loan program to prop up Greek banks. The government has been trying to reach a new debt deal with international creditors.

Questions:

1. In 2013, what other country took similar measures as Greece is doing to avoid a bank collapse?
2. In a short paragraph, explain why this run on the banks is happening.
3. Approximately how much does Greece owe to the European Central Bank and the IMF?

Source:

Thomas, L. and N. Kitsantonis. (2015). Greece Will Close Banks to Stem Flood of Withdrawals. The New York Times, June 28 (Retrievable online at http://www.nytimes.com/2015/06/29/business/greek-debt-crisis-european-central-bank.html?_r=0)