Papademos warned that conditions were deteriorating faster than expected with cash flow likely to turn negative in early June amid a sharp fall in tax revenues and a loosening of spending controls during two back-to-back election campaigns. Mounting anxiety that Greece is headed for further political instability and a possible exit from the euro has prompted many Greeks to postpone making tax payments ,reports FT.
The looming cash crunch was revealed on Sunday in an eight-point document published by the Greek newspaper To Vima.
The ECB will step in to prop up Greece in the very short-term, with the likelihood that Greece will replace the euro with a new drachma within weeks.
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