Greece's central bank headed for "painful Euro exit"

PanARMENIAN.Net - Greece's central bank has warned for the first time that the country could be on a "painful course" to default and exit from both the eurozone and the EU, BBC News reports.

It comes as the Greek government and its international creditors blamed each other for failing to reach a deal over economic reforms.

That failure is holding up the release of €7.2bn in bailout funds.

About €30bn was withdrawn from Greek bank deposits between October and April, the central bank added.

The central bank also warned the country's economic slowdown would accelerate without a deal. "Failure to reach an agreement would... mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country's exit from the euro area and, most likely, from the European Union," the Bank of Greece said in a report.

"Striking an agreement with our partners is a historical imperative that we cannot afford to ignore."

Despite the warning, Greek shares rose 0.8% in mid-morning trade on the Greek stock exchange. The Athens benchmark index has fallen 11% since Friday, with bank shares worst affected.