RUN TO THE BANK-Greek people drain banks amid economic uncertainty -COUNTRY ON THE VERGE OF AN ECONOMIC COLLAPSE

Greek people drain banks amid economic uncertainty

Greece has been without a government since last week's parliamentary elections failed to give any of the participating parties an absolute majority. The failure has shaken financial markets and pushed experts into questioning the country's ability to stay in the eurozone. 

Athens has announced new general election, which, according to analysts, will decide the fate of the country in next decades and determine whether it should go back to its former currency drachma. 

Antonis Samaras, the leader of the country's main center-right political party, New Democracy, has likewise said the election results will determine whether Greece should stay in the eurozone. 

The announcement sent shockwaves throughout the world's financial markets and raised concerns of asset drain in Greek banks, with official figures showing a withdrawal of at least EUR 700 million (USD 894 million) on Monday. 

On Wednesday, Greek political parties agreed to form a caretaker government to organize the elections, which, under electoral laws, will be held in mid-June. 

President Karolos Papoulias had held a third day of unsuccessful talks with political leaders in hope of a compromise a day earlier. He had told the leaders that "the extension of political instability will lead to fatal consequences," and warned that June could become a "month of tragedy" for the country. 

Latest statistics show that the Greek economy has lost 6.2 percent in the first quarter of 2012. Greece could go bankrupt by the end of June if international lenders refuse to prop the country up with a EUR-130-billion bailout fund to keep it afloat and inside the eurozone. 

Also on Wednesday, Germany rejected renegotiation of the aid package and insisted that the country had to fulfill the preconditions of the bailout to continue receiving assistance. 

The Greek are, meanwhile, outraged at two years of harsh austerity measures imposed in return for financial assistance.