Central Banks Steel for Greek Vote

G20 ready for 'coordinated action'
By Matt Cantor,  Newser User
Posted Jun 15, 2012 6:36 AM CDT
Supporters of radical left-wing Syriza party take part in a rally before the head of Syriza Alexis Tsipras speaks at Omonia square in Athens, Thursday, June 14, 2012.   (AP Photo/Petros Karadjias)

(Newser) – Central banks across the world are preparing to take decisive action if needed after Greece's election on Sunday, which could rattle financial markets. "The central banks are preparing for coordinated action to provide liquidity," a G20 aide tells Reuters. Britain says it will inject its economy with cash; Canada says it's "ready to act"; China, India, and Japan are all bracing for the election's potential economic impact. European financial authorities are even preparing for a potential run on Greek banks in the event of a victory by the anti-bailout SYRIZA party.

SYRIZA, which has vowed to exit the European bailout deal immediately, is publicly polling just about even with conservatives—though secret polls suggest conservatives may have the upper hand. France's new president issued a warning against a SYRIZA victory: "If the impression is given that Greece wants to distance itself from its commitments and abandon all prospect of recovery, there will be countries in the eurozone which will prefer" that Greece exits the currency, François Hollande said. (Read more European Union stories.)

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