Greece rejected creditors' demands for more austerity in crucial referendum

Jul 6, 2015 12:15 IST

People of Greece rejected the creditor’s demand for more austerity in exchange of extension of bailout package (15.5 billion Euros) in a historic referendum on 5 July 2015. The creditors include the troika of European Central Bank (ECB), European Union (EU) and International Monetary Fund (IMF).

The referendum asked Greeks a simple question vote Yes or No on a proposal from Euro group leaders to extend financing to the deeply indebted country, 1.7 billion dollar (1.5 billion euro).

61.31 percent voted ‘No’ as compared to 38.69 percent ‘Yes’ for the referendum that demanded for more austerity in return for rescue loans.

The voters backed leftist Syriza government led by Prime Minister Alexis Tsipras, who insisted the vote would give him a stronger hand to reach a better deal.

The referendum was called amid meetings of Eurozone leaders trying to come up with a deal to allow the country to avoid default.

The referendum was Greece's first in 41 years and it came amid severe restrictions on financial transactions in the country imposed in last week of June 2015.

Post the Greek referendum, the finance minister Yanis Varoufakis resigned from his office.

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