Greece debt crisis: Live Coverage

Shares in Wall Street have extended their losses, closing down further as fears of the impact of a Greek exit from the eurozone intensify. The Dow Jones closed 2% lower at 17,596, with the S&P 500 losing 2.1% to 2,057. The tech-heavy Nasdaq also lost 2.1% to close at 2,057.

The European Central Bank is ready to use all available instruments to help Greece if needed, vice-president Benoit Coeure has said in an interview with French newspaper Les Echos. He also reiterates that if the Greeks vote "yes" in Sunday's referendum, he has no doubt that the eurozone will find ways to meet its commitments towards Greece.

Greek journalist Nick Malkoutzis tweets:

Interviewed on Greek television tonight, Alexis Tsipras says he does not believe that the country's creditors want Greece to leave the eurozone, mainly because the cost of such action would be huge. The Greek PM's aim for Sunday's referendum is to bring a continuation of negotiations with its lenders, he adds. The stronger it rejects the deal on offer, the stronger Greece's hand in talks becomes, Mr Tsipras says.

The BBC's Joe Miller reports from central Athens: 

Email Message: If a "no" vote on Sunday would indeed spell disaster for Greece, you wouldn’t know it from the rally in Athens’ Syntagma Square tonight. More of a carnival than a march, thousands of citizens filled the steps in front of the Greek Parliament, with a live band playing well into the night, and souvlaki stalls doing a roaring trade. Singing and dancing, young and old, they wanted to convey that they were not afraid of rejecting Europe’s proposals. “It will be painful for a few weeks, a few months,” one woman tells me, “but anything is better than the current situation”.  

If a "no" vote on Sunday would indeed spell disaster for Greece, you wouldn’t know it from the rally in Athens’ Syntagma Square tonight. More of a carnival than a march, thousands of citizens filled the steps in front of the Greek Parliament, with a live band playing well into the night, and souvlaki stalls doing a roaring trade. Singing and dancing, young and old, they wanted to convey that they were not afraid of rejecting Europe’s proposals. “It will be painful for a few weeks, a few months,” one woman tells me, “but anything is better than the current situation”.  

Quite a big turnout - an estimated 17,000 people - for a pro-Syriza rally in the Greek capital tonight.

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Reader Alan Fowler writes:

Email Message: As someone who is in Greece at the moment and talking to the locals I can assure you that the people (through no fault if their own) have not been informed of the impact of their vote and do not fully understand the consequences. They feel that if they vote 'no' they will get a better offer, rather than no new offer at all. When have you heard anyone in the Greek government explain to its people their plans for running the country with no bailout money. For the referendum to be fair they have to have the chance to evaluate the outcome of voting each way. This is the duty of the government.

As someone who is in Greece at the moment and talking to the locals I can assure you that the people (through no fault if their own) have not been informed of the impact of their vote and do not fully understand the consequences. They feel that if they vote 'no' they will get a better offer, rather than no new offer at all. When have you heard anyone in the Greek government explain to its people their plans for running the country with no bailout money. For the referendum to be fair they have to have the chance to evaluate the outcome of voting each way. This is the duty of the government.

Things really must be grim if Russia is getting worried. "Moscow is watching developments in the European Union very closely in the context of the financial crisis in Greece," said Kremlin spokesman Dmitry Peskov. "We are concerned about the possible negative consequences for the whole of the EU."

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European Union President Donald Tusk has warned the Greek people that voting no in the referendum will not give their government more leverage to seek a better bailout deal: "Every government has a right to hold a referendum, therefore we respect the Greek decision. However, one thing should be very clear: if someone says that the government will have a stronger negotiating position with the `no' vote, it is simply not true. I'm afraid that which such a result of referendum, there will be even less space for negotiation."

More bad news for Greece: Standard & Poor's has cut its rating on the country's government debt further into junk territory - from CCC to CCC-, saying the probability of Greece leaving the eurozone was now about 50%. S&P said Greece is likely to default on its commercial debt during the next six months.

The BBC's Joe Miller is at tonight's rally in the Greek capital:

Here's a link to the Periscope video that Guardian columnist Owen Jones made earlier at the Solidarity for Greece rally in Trafalgar Square.

Catch up with the World Service's daily business show here: 

Professor Robert Arnott of Oxford University responds to an earlier reader comment :

Email Message: Tim Grover is quite wrong. The EU does not have the right to interfere in the internal affairs of its member states. The referendum is a Greek affair and from what I have read in the Athens press, the Troika's proposals have been fully reported. It is the Greek people that are fed up with being bullied and forced, mainly by the Germans, into something that is not socially or morally acceptable.  

Tim Grover is quite wrong. The EU does not have the right to interfere in the internal affairs of its member states. The referendum is a Greek affair and from what I have read in the Athens press, the Troika's proposals have been fully reported. It is the Greek people that are fed up with being bullied and forced, mainly by the Germans, into something that is not socially or morally acceptable.  

Reader Richard Bevan writes: 

Email Message: I have great sympathy with the Greek people; they have suffered a lot and the current situation is crippling their economy, but by calling a referendum with no clear plan as to the alternatives their Government has failed them. It’s time to stop posturing and act more like statesmen. Reforms are needed to make sure wealthy Greeks pay their fair share and to remove some of the byzantine complexities which make the Greek tax system unworkable. But as part of that the EU also needs to engage in substantive talks around debt relief (or rescheduling) otherwise, even if a deal is done, we will be back in the same position in a year’s time.  

I have great sympathy with the Greek people; they have suffered a lot and the current situation is crippling their economy, but by calling a referendum with no clear plan as to the alternatives their Government has failed them. It’s time to stop posturing and act more like statesmen. Reforms are needed to make sure wealthy Greeks pay their fair share and to remove some of the byzantine complexities which make the Greek tax system unworkable. But as part of that the EU also needs to engage in substantive talks around debt relief (or rescheduling) otherwise, even if a deal is done, we will be back in the same position in a year’s time.  

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First Obama, now the Chinese premier wants Greece to stay in the euro. "China wants to see Greece stay in the eurozone and we urge relevant creditors to reach agreement with the Greek government at an a early time," Li Keqiang (pictured left) said after a summit with EU leaders in Brussels.

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British banks can weather the Greek storm, George Osborne said today. "The UK banking exposure to Greece is dramatically less than it was in 2012," the Chancellor told MPs. "Less than 1% of the core tier-one capital of the UK banks is in Greek debt and I think they are well prepared for whatever eventualities unfold."

No great surprise, but a Greek government official says Greece will not pay an IMF loan repayment due on Tuesday.

The BBC's Joe Miller tweets:

BBC personal finance reporter Simon Gompertz tweets:

More from the Chancellor, George Osborne, who has told MPs that most people regarded the referendum called by the Greek PM Alexis Tsipras for Sunday as a vote on whether Greece should remain in the eurozone. 

Quote Message: "This lunchtime as we just heard the Prime Minister chaired a meeting attended by the Governor of the Bank of England, myself, the Foreign Secretary and others to coordinate our response. Britain's attitude to the developing Greek crisis is clear - we hope for the best but we prepare for the worst."

"This lunchtime as we just heard the Prime Minister chaired a meeting attended by the Governor of the Bank of England, myself, the Foreign Secretary and others to coordinate our response. Britain's attitude to the developing Greek crisis is clear - we hope for the best but we prepare for the worst."

The Treasury and the Bank of England stand ready to ensure the stability of the UK economy in the event that Greece does leave the eurozone, Mr Osborne added. There are also contingency plans in place to help UK citizens in Greece "if the situation deteriorates".

Chancellor George Osborne has told MPs that he hopes for the best on the Greek crisis but is preparing for the worst. No one should underestimate the effect of a Greek exit from the euro on the European and UK economies, he adds.

The Department for Business and the Treasury have issued lengthy guidance for UK businesses that trade with Greece following the introduction of capital controls. It warns: "Where countries have experienced disruption in the past, companies have experienced: delays on payments and deliveries; impacts on demand due to ongoing economic uncertainty."

  Another reader, Tim Grover, emails:  

Email Message: I am Greek living and working in London for the last 20 years. My family are still in Athens. Mr Juncker is absolutely right. All Greeks are misinformed about the EU efforts and proposals. They are not informed about the options or about the consequences of a Yes/No choice. The referendum itself is unconstitutional ... The EU should intensify their efforts to inform Greek people of their proposals and the consequences."

I am Greek living and working in London for the last 20 years. My family are still in Athens. Mr Juncker is absolutely right. All Greeks are misinformed about the EU efforts and proposals. They are not informed about the options or about the consequences of a Yes/No choice. The referendum itself is unconstitutional ... The EU should intensify their efforts to inform Greek people of their proposals and the consequences."

Europe's stock markets ended the day sharply lower as the crisis in Greece escalated. The DAX 30 in Frankfurt shed 3.6%, the CAC 40 in Paris fell 3.7%, while the FTSE 100 in London closed down almost 2% at 6,620. Bourses in Lisbon and Milan both fell more than 5%, while Madrid was off 4.6%.

Not much sympathy for Greece from some of our readers this afternoon. John Dyer writes: "I realise that most people were not responsible for the borrowing but how many paid their taxes in full? How many had a non-job with the Greek government? No, some Greeks simply need to grow-up and accept their responsibilities." Dave Thompson, in response to Joe Miller's earlier post, writes: "Dmitris [the Greek chap interviewed in the cafe] seems to speak for the sad majority of older Greeks - that to them, this is in no way a problem of Greek making; instead it's a conspiracy of richer Western countries to destabilise them. The Greeks must reap what they have sowed."

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Columbia University professor Jeffrey Sachs tells Bloomberg TV that Europe cannot force Greece to leave the euro because there is no formal mechanism to do so. He says Greece will now go into default, which he thinks is the right thing for the country to do: "Greece should default - and it should stay in the euro." Germany's refusal to allow debt reduction has resulted in a "full banking panic compounding the pain", however.

Francois Hollande and Barack Obama said they will work together to help restart talks with Greece, according to an aide to the French president. The US president and Germany's Angela Merkel discussed Greece yesterday, while US Treasury secretary Jack Lew spoke with Greek PM Alexis Tsipras.

The BBC's Joe Miller reports from downtown Athens:

Celebrated bond trader Bill Gross of Janus Capital tweets: 

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The BBC's Joe Miller reports from Athens: When Dmitris heard I was with the BBC, I thought he was going to wring my neck. But after launching into a series of invectives against David Cameron, the UK, and the richer European economies, he began to tell me about his life. Now in his late sixties, Dmitris had to close his stationery shop in February - after 43 years in business. His children are planning to leave Greece. "I want to stay in Europe," he says. "Just not this Europe."

Further to his tweet, Italian PM Matteo Renzi is agreeing with EU Commission president Jean-Claude Juncker in saying that a no vote by Greek voters in Sunday's referendum would point to the country's departure from the euro.

Italian PM Matteo Renzi tweets:

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The BBC's Simon Gompertz reports that ABTA chairman, Noel Josephides, is near Mount Athos in Greece. He says "there doesn't seem to be any panic", with cash machines dispensing their €60 limits, while he has twice withdrawn €100. Asked whether businesses would reject cards because of worries they could have trouble prising the money out of their banks, Mr Josephides says hotels are accepting cards but one petrol station would only take cash. "This has always been a cash economy," he adds.

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The BBC's Joe Miller reports from Athens: If not for the doom-laden headlines displayed across newspaper kiosks, and the modest queues outside cash machines, you'd be forgiven for thinking it was just a normal weekday in the Greek capital. TV crews and tourists occupy the central squares in the searing heat; the bars and cafes are as busy as ever. But there is a sense of unease - Greece's economy may just manage to function until Sunday's planned referendum, but Athenians are all too aware that the country's future still hangs in the balance.

Quote Message: Greece is now staring into something of a financial and economic abyss. A no vote would presumably see Greek banks subject to economy-crushing restrictions on cash withdrawals and international transfers for the indefinite future. Greece would be careering towards the euro door marked exit, even though such a door was never supposed to exist, let alone be opened. At that historic juncture, the euro would no longer be a proper single currency for most of Europe.

Greece is now staring into something of a financial and economic abyss. A no vote would presumably see Greek banks subject to economy-crushing restrictions on cash withdrawals and international transfers for the indefinite future. Greece would be careering towards the euro door marked exit, even though such a door was never supposed to exist, let alone be opened. At that historic juncture, the euro would no longer be a proper single currency for most of Europe.

Read more from Robert here.

The Greece Solidarity Campaign is holding a protest in Trafalgar Square in central London at 6pm tonight. Its Facebook page reads: "The ECB is threatening to cut off funding to Greece's banks. An act of financial war against Greece intended to provoke the collapse of its banking system and prevent it from holding a referendum. All carried out by unelected technocrats with no mandate from anyone."

Reuters tweets an exclusive story citing unnamed sources:

Wall Street is now open and it seems the Greek crisis has not spooked investors quite as badly. The Dow Jones is down 136 points, or just under 0.8%, at 17,810 points, while the S&P 500 is just 0.6% lower at 2,089 points.

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I'm not superstitious, but is the FTSE 100 trying to tell us something? And yes, the London market is indeed down 1.3% as we head into the final two hours of trading for the day. Thanks to Google Finance for the image.

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Mrs Merkel says EU leaders had made compromises in their offer to Athens to tackle the debt crisis, but it became clear that the Greek government was not willing to do the same. However, she promises that everything necessary will be done to protect the euro.

Merkel adds Greece has been given a generous offer and that if the Greek government seeks more talks after Sunday's referendum then Germany would not object.

Angela Merkel is speaking. She says Europe can react more robustly now than it could five years ago. The German chancellor adds she is open to further talks with Greece after the current aid package expires if the Greek government wants them. "We are still prepared to help should this be required."

Thanks to Faarea and Howard for this morning's coverage of the Greek crisis. Chris Johnston here with you for the rest of the day with all the latest developments. Also follow us at @BBCBusiness and me at @cajuk

President of the EU Commission Jean-Claude Juncker said: "I am particularly sad by what Europe saw last Saturday. In one night, Europe suffered a major blow, and goodwill was flown to the wind. Egotism, tactical gains, populist gains took precedence over other aspects."

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British PM David Cameron is to hold a contingency meeting today over the Greek crisis, said his spokeswoman. The government's contingency planning meeting will be attended by Bank of England governor Mark Carney and include chancellor George Osborne.

Michalis Spourdalakis is dean of Economics and Politics at the University of Athens. He said: "The referendum is not a mistake - it introduces a very important factor into negotiations - one the European Union and of course the eurozone has forgotten: the people's factor ...with this move the government reminds Greece and the fellow Europeans that they must have a voice ...These technocrats - these institutions are scared that this is going to be a domino effect of democracy in Europe".

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If you don't like drones, don't shoot them down - that's the lesson to take from a US court case over a hexacopter brought down with a 12-gauge shotgun in California. The court said it was "unreasonable" to use firearms to bring drones down. The court ruled in favour of the drone's owner and told the shooter to pay for repairs. He hasn't. More legal action may follow.

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Bloomberg is reporting that Swiss National Bank chief Thomas Jordan told colleagues his central bank intervened in the market after investors sold euros and bought the franc. The franc is the best-performing currency of the year.

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Spain will be able to cope with a Grexit, its economy minister insists. Luis De Guindos told reporters: "The position of our banks, our fiscal position, economic growth, competitiveness, the evolution of the economy ...These are the main guarantees for the Spanish economy. We've never been so prepared for these circumstances and much better than three years ago". Spanish bond yields rose earlier today, as investors became fearful of financial contagion on the weaker euro economies - like Spain.

EU Commission president Jean-Claude Juncker expressed concern about exactly how well-informed the Greek people were about proposed reforms, ahead of a referendum. "What do the Greek people know about our (the EU's) flexibility and determination to help them? What do they know about the details of our common proposals? What do they know of this latest offer we published yesterday? ...It would be advisable for the Greek government to tell the truth to the Greek people instead of simplifying the message."

We appear to have captured your collective imagination with our plea for portmanteaus from the crisis. James from Glasgow offers Grepetition, "which could cover a multitude of sins from the never-ending stories about ATMs to the actual negotiations themselves". This is, as we were reminded by another reader, a serious matter, however. If the crisis is a topic affecting you, send us your thoughts: bizlivepage@bbc.co.uk

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A slightly wounded-looking Jean-Claude Juncker told a press conference: "I will never let the Greek people go down. Never. Greece is a member of the European family and I want this family to stand together."

The National Bank of Greece's branch in London is open again after being closed earlier in the day. What happens for the rest of the week is not entirely clear, but that can be said for the whole crisis.

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Some reaction to Lancashire County Council's decision not to frack. Adam Marshall, executive director for policy and external affairs for the British Chambers of Commerce said: "In the face of the pressing energy security problems Britain faces, today's decision is perverse, short-sighted and timid." But Friends of the Earth north west campaigner Furqan Naeem said: "People in Lancashire and across the UK who have been tirelessly campaigning against fracking will breathe a sigh of relief today."

The Serbian central bank has limited transactions of Greek-owned banks, reports the Reuters news agency. The limits apply to transactions between commercial banks and their Greek home branches. Measures were reportedly introduced to limit contagion on the Serbian banking sector. The central bank said the measures were temporary. Greek banks reportedly have a combined market share of 15% in Serbia. The central bank added: "These measures do not apply to depositors (of those banks) who will be free to use their funds in full."

EU commission president Jean-Claude Juncker said: "Greece's exit from the eurozone will never be an option for me, but I cannot defend against all others." He added that his "sole concern remains to make a fair and balanced deal with Greece... what is at stake here is ...European shared solidarity and responsibility."

tweets: Junker: 'This is not a stupid austerity package' but 'some of the measures will hurt' #Greece

tweets: We don't deserve the criticism being levelled at us - @JunckerEU is making his defence strategy public early on #Greece

tweets: .@JunckerEU giving a lengthy justification of everything he has done over last five months - sounds ominous for future progress #Greece

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Jean-Claude Juncker, president of the EU commission, is holding a press conference says he is "deeply saddened" by the weekend's events. He says "selfishness" and "tactics" gained the upper hand.

German Chancellor Angela Merkel calls for compromise but also self-responsibility. Ms Merkel has told fellow CDU party members that the euro is more than a currency. "If the euro fails, Europe fails," she said. She stressed the need for compromise to solve the Greek eurozone crisis, saying "Europe survives on its ability to compromise." But she also said that Europe should not bend its principles, and said that eurozone members have a duty to act responsibly. Solidarity and responsibility are two sides of the same coin, she said.

E-commerce business owner Panos Veinoglou in Athens - he runs five websites selling products to Greek market - said: "If there is a no vote on Sunday, the outcome will be bank controls for a very long time and I am really worried ...not quite anarchy but serious problems like safety, food supply, fuel, medicine. That's going to be the first problem: medicine. I can't talk about it any more, no more... we cannot serve our customers, we cannot pay our suppliers, the whole thing is at a halt."

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tweets: We've spoken to a kitchenware importer who pays cash in advance. Now he can't buy any new stock & may have to raise prices

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Travel by train, bus and tram in and around Athens will be free for a week to ease pressure on petrol stations and the purses of those struggling to withdraw cash. Transport minister Christos Spirtzis said the offer will last until 7 July when banks are meant to re-open, and will begin when the decision is published - probably Tuesday.

Councillors in Lancashire have rejected plans by the energy firm Cuadrilla to drill, frack and flow gas at a site at Little Plumpton near Blackpool. Permission for Cuadrilla to explore at a 2nd site at Roseacre Wood was refused last week. The move is a significant set-back for the shale gas industry.

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Shareholders haven't taken tool hire firm HSS's update at all well, if that 22% drop in share price is anything to go by. Trading in the second quarter of the year was "marginally below expectations," it said earlier. "In June, we have seen customer activity begin to return to more normalised levels, with order books building into the second half of the year," it added.

The Confederation of British Industry says Carolyn Fairbairn is to become its new director-general, taking over from John Cridland at the UK's biggest business group in November. Mr Cridland led the CBI since January 2011. Ms Fairbairn is the former director of strategy at both the BBC and ITV, and a non-executive at firms including Capita, manufacturer Vitec, Lloyds Banking Group, the Competition and Markets Authority and the UK Statistics Authority.

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At the branch of Alpha Bank London, at Cannon Street, all the activity was on the phones rather than at the counters. The bank is UK regulated, with UK customers but wholly owned by the Greek Alpha Bank Group. In the traditional-looking branch the phone was ringing regularly at reception but nobody had come to the adjacent counter for some time.

Lots of officials appear to be positioning themselves for the worst or distancing their countries from the risk of contagion. Polish deputy finance minister Artur Radziwill said there is almost no direct impact from the Greek debt crisis on Poland's economy and its banking system is stable. Ulrich Grillo, the head of the Federation of German Industries said if Greece should leave the eurozone the impact on German industry would be limited because of the small amount of trade between the two countries.

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There is still time to try to strike a deal on Greece, French President Francois Hollande has said. But it will be the Greek government's decision, he added. "There are a few hours before the negotiation is definitively closed, in particular for the prolongation of the Greek aid programme," Mr Hollande said. "I wish, if the Greeks, if their government, so decide, that talks resume."

The European Central Bank's governing council will meet on Wednesday to decide whether to increase emergency funding to Greek banks, council member Ewald Nowotny has said. "I don't want to anticipate this... Now the ball is in Greece's court."

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The National Bank of Greece has a branch in London - although there are no ATMs or retail counters. It is shut today. One customer looking concerned outside said he had come to see what was going on but went away none the wiser.

In the bond market - where government debt is traded - borrowing costs rose for Spain, Italy and Portugal but declined for Germany. That suggests investors are more wary of countries with stretched finances and seeking safe havens such as Germany, consistent with the idea of financial contagion spreading from Greece. But so far those moves have been moderate, and the level of borrowing costs remains affordable for the rest of the Eurozone.

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The reforms proposed by Greece's international creditors were "surrealistic and not practical", says Syriza's MEP Stelios Kouloglou. He told the Today programme: "This programme is a hell. This will devastate. This will be 300,000 more unemployed people. It was a political game to overthrow Tsipras. It was not a sustainable economic proposal." Syriza's anti-austerity government has called for a referendum on whether or not to accept the reforms-for-cash deal with the IMF, the ECB and other creditors.

The Financial Times reports that Pierre Moscovici, the European economy commissioner, tweeted that negotiations with Greece could start again. The Times says investors will probably pile into less-risk assets such as US sovereign bonds, gold and Swiss francs , depressing returns, after failure to reach a Greek debt deal over the weekend.

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Greece is depressing the Europeans. The main stock market indexes opened down: London's FTSE by 2.09%, Frankfurt's DAX fell 3.7%, and France's CAC was down 3.9%. Investors fear a Greek default and exit from the euro, if Greece refuses to accept reforms imposed by its international creditors.

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Greece and its closed banks is the story dominating this morning's papers. The Daily Telegraph predicts financial markets being "poised for their worst period of turmoil" in four years as Greece prepares for its referendum. The Wall St Journal says Greece will "almost certainly" default on its payment due to the International Monetary Fund on Tuesday.

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And here's the euro-dollar rollercoaster. Or, in the spirit of ever-multiplying portmanteaus, the eurocoaster. The euro slipped below $1.10 earlier, but is now trading at $1.1084. Send us your favourite or least-favourite made-up crisis words to bizlivepage@bbc.co.uk.

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Trading on the China stock market at the moment is "extremely volatile", after suffering its worse two-week fall in nearly 20 years. That prompted the country's central bank to cut interest rates at the weekend, and ease reserve requirements for some banks, in an attempt to calm stock market fluctuations. The BBC's Carrie Gracie in Beijing told the Today programme: "It doesn't seem to have done a huge amount, although some people feared that if the central bank hadn't done anything, we may have got a day of panic today."

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Here's a bit of pictorial context to the rally in German bunds. We are back to where we were about a week ago. Yields have dropped - and thus the price has spiked - albeit rather suddenly.

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If the Greeks do not accept the reforms proposed by international creditors, the probability of Greece leaving the euro is almost certain, according to Francesco Papadia, a former director general for Market Operations at the European Central Bank. He told the Today programme: "If they vote no, it's very clear that Greece is out of the euro. I don't see how they could stay in. Of course it's very complicated - it's legally impossible but in practical and political terms, I don't think they could stay in with a no vote."

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tweet: "The people say No" daubed on the marble in front of Syntagma Sq in Athens

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Constantine Michalos, president of the Athens Chamber of Commerce and himself a businessman in the city, tells 5 live the capital controls need to be short term. "It's going to be extremely difficult to operate your normal business life," he says. "This has been a long, drawn-out bank run that started essentially five months ago... If it lasts more than a week it's going to be very difficult." Making payments to suppliers is the big problem, he adds.

As predicted, German bond yields are down - meaning the price has gone up - and yields are up for the weaker European economies. German debt yields are down about 20 basis points (0.2%), Italy up 32.8 basis points and Spain and Portugal up 32.3 and 36.5 basis points. French sovereign debt yields are down 7.9 basis points.

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What might happen in the markets today? "What we might see is funds going out of these weaker economies and into the quality, which will be German bunds," says Laura Lambie of Investec Wealth & Investment on 5 live. "All eyes are very much going to be on what the Greek people are going to be asked... I do think there will be two weeks of uncertainty that will move funds from weak economies into safe havens."

Puerto Rico's governor Alejandro García Padilla says the US territory can't pay its $72bn in debts, the New York Times reports. It has more debt per person than any other state, the newspaper says. Mr García Padilla says he wants to avoid a default, the newspaper reports, but he also wants to avoid an economic "death spiral".

The European Commission has looked at Greece's new capital controls and decided they are "justified". Commissioner Jonathan Hill said: "In the current circumstances, the stability of the financial and banking system in Greece constitutes a matter of overriding public interest and public policy that would appear to justify the imposition of temporary restrictions on capital flows. Maintaining financial stability is the main and immediate challenge for the country."

David Stubbs from JP Morgan Asset Management told the Today programme: "To a certain extent, we do expect markets to react to this with peripheral bond yields probably higher, the Euro a little bit lower throughout the week and some strength in the safe havens like the Swiss Franc and the British Pound."

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The rest of the eurozone shouldn't be too afraid of contagion from Greece's debt crisis, according to David Stubbs from JP Morgan Asset Management, who told the Today programme: "There's great reason to believe that this is not what we saw in 2011. If you look at the linkages to the rest of the economy and Greece, they're dramatically reduced. The economic situation in the eurozone is vastly improved and they have credible tools they didn't have last time - primarily the quantitative easing programme from the ECB [European Central Bank]."

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The BBC's Joe Lynam is in Athens and told the Today programme: "The average Greek isn't responsible for this. The average middle class person is not responsible for this. But supposedly the Greek political elite and the oligarchs got them into this mess by potentially taking on too much debt and making promises to the electorate which would ultimately have to be called back in 15 years after the foundation of the Euro."

What's different now, compared with the capital controls Cyprus implemented in 2013? "With Cyprus it was very clear their future was in the eurozone," says Nina Schick, of think tank Open Europe on 5 live. "With a liquidity crunch the economy is going to suffer," she says. "If the result is a no, it will make much more sense to keep capital controls."

Nina Schick of think tank Open Europe is on 5 live talking about the Greek referendum on its future in Europe. Was it a bit of a surprise? "I don't think anyone saw that coming," she said. But it's a legitimate move for them, especially since it deviates from the party's desires, on which they were elected. "Syriza would have completely capitulated if they agreed what was on the table on June 25."

Good morning and welcome. It's been confirmed that Greek banks will be closed all week, the Athens Stock Exchange will be closed today and Greeks will be limited to €60 cash withdrawals per day. Athens is due to make a €1.6bn payment to the IMF on Tuesday - the same day that its current bailout expires. Stay with us for analysis and breaking news on Greece and all the other business news of the day. Get in touch via bizlivepage@bbc.co.uk or on Twitter @BBCBusiness.