The failure to reach a deal with creditors leaves Greece

The Athens stock exchange will be closed as the government tries to manage the financial fallout.Athens: Greece moved to check the growing strains on its crippled financial system on Sunday, closing its banks and imposing capital controls that brought the prospect of being forced out of the euro into plain sight. Despite the hardening of positions, officials around Europe and the United States made a frantic round of calls and organised meetings to try to salvage the situation. US 10-year Treasury futures rose 1 27/32 in active trading early.German Finance Minister Wolfgang Schaeuble openly questioned the solvency of Greek banks, a key condition to qualify to receive such finance." Many leading economists have voiced sympathy with the Greek government's argument that further cuts in spending risk choking off the growth that would give Greece some prospect of servicing debts worth nearly twice its annual national income. However, in economic powerhouse Germany, other southern states that have endured austerity in return for EU cash and poor eastern countries with living standards much lower than Greece's, many voters and politicians have run out of patience. The creditors wanted Greece to cut pensions and raise taxes in ways that Tsipras has long argued would deepen one of the worst economic crises of modern times in a country where a quarter of the workforce is already unemployed. Anxious to reassure tourists, the government said the 60 euro cash withdrawal limit would not apply to people using foreign credit or debit cards.

The failure to reach a deal with creditors leaves Greece set to default on 1.6 billion euros of loans from the International Monetary Fund that fall due on Tuesday.Greece's top refiner, Hellenic Petroleum, said it had enough fuel reserves on hand to last for many months, but there were reports of long queues forming at petrol stations as motorists rushed to fill up. Banks will be closed and the stock market shut all week, and there will be a daily 60 euro limit on cash withdrawals from cash machines, which will reopen on Tuesday. Euro zone officials refused, and in his televised address Tsipras bemoaned the refusal as an "unprecedented act".". "That is going to have a real big impact on markets and that will generate increased volatility," said Ian swing arm gate opener Stannard, European head of FX strategy at Morgan Stanley in London.The impending default on the IMF loans leaves Greece sliding towards a euro exit with unforeseeable consequences for Europe's grand project to bind its nations into an unbreakable union by means of a common currency. The broader consequences for Greece's economy, now back in recession, are likely to be severe, with the tourism sector, which accounts for almost a fifth of economic output, about to start its vital summer season."The more calmly we deal with difficulties, the sooner we can overcome them and the milder their consequences will be," a sombre-looking Prime Minister Alexis Tsipras said in a televised address.. Tsipras faces growing political pressure with some opinion polls suggesting a majority of Greeks could turn their back on his call to reject the bailout and instead decide to support the lenders' package in next Sunday's referendum. The fear of contagion produced a sharp move into safe-haven government debt. US President Barack Obama called German Chancellor Angela Merkel, and senior US officials including Treasury Secretary Jack Lew, who spoke to Tsipras, urged Europe and the IMF to come up with a plan to hold the single currency together and keep Greece in the euro zone.