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Wednesday, May 16, 2012

Greek PM Sworn In Amid Fears Of Run On Banks

A senior judge has been sworn in to lead Greece's caretaker government for a month amid fears uncertainty could spark a run on the country's banks.

Council of State head Panagiotis Pikrammenos, 67, will head a government that will lack the mandate to make any binding commitments until a new election, which is expected on June 17.

His 16-strong cabinet was due to be sworn in on Thursday, as speculation continued as to whether Greece could be forced to leave the euro.

And with hundreds of millions of euros withdrawn by Greeks from banks in the wake of the nation's May 6 election, political doubt is also worrying the country's international creditors.

Speaking after a briefing from central bank governor George Provopoulos, President Karolos Papoulias told party leaders around 700m euro (£560m) in deposits had left Greek banks since the day after the election.

According to a transcript of the meeting's minutes, Papoulias said: "The situation in the banks is very difficult. Read More