DHAKA: 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.

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About €30bn was withdrawn from Greek bank deposits between October and April, the central bank added.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

‘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.

BDST: 1910 HRS, JUN 17, 2015
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