Greek Finance Minister: The Banks Are Fine, This Is A Political Crisis Caused By Eurogroup

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Greek Finance Minister Yanis Varoufakis said he’ll quit if Greece votes to accept creditors’ bailout proposals in Sunday’s referendum. He said he would "rather cut my arm off" than sign a new accord that doesn’t restructure Greece’s outstanding debt. Varoufakis expects Greeks to follow the government’s recommendation to reject the bailout proposals, which would require further tax increases and spending cuts in exchange for continued aid. He spoke to Bloomberg's Guy Johnson on "The Pulse."

YANIS VAROUFAKIS, GREEK FINANCE MINISTER: It is not a banking crisis, it is not that the banks are the problem, according to the ECB. The banks were perfectly capitalized, there was no problem. What is happening is a political decision by the Eurogroup to shut the banks down as a way of effectively pushing us to accept a non-viable agreement on the political level.

So this is a political crisis, it has nothing to do with the banks. Once the political crisis is over, after the Greek people deliver their verdict, the banks will open. I can assure you that on Monday if there is a political will, the ECB will, on the back of some preliminary agreement by teleconference of the Eurogroup, can easily restart the banking system and we will have an agreement within 24 hours...

We are unreconstructed Democrats aren't we? We said we were going to take this to the Greek people, and if the Greek people say yes to this proposal from the institution, we will do whatever it takes in order to make sure it is signed.

If a no vote, as we are recommending, is delivered, then we are going to immediately start negotiations, and believe you me, there is going to be an agreement along lines that are different to the institutions...

Do you have any doubt that if it is a yes, the same proposal that was presented to me on the 5 of June will be back on the table, it certainly will be


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