Money flies out of Greek bank accounts amid political turmoil

Greeks are withdrawing money from their bank accounts at an alarming rate amid political uncertainty and a potential return to the drachma.

They have taken out hundreds of millions of euros since the inconclusive May 6 election with many Greeks now opting to bank abroad.

Europe Correspondent Martin Geissler reports on the situation from Athens:

A senior judge has been sworn in to head Greece's caretaker government for a month as the debt-crippled country lurches through a political crisis that threatens its membership in the 17-nation eurozone.

The newly sworn-in Panagiotis Pikrammenos said: "It is a purely caretaker administration, as you know, with a sole mission: to conduct elections so that the Greek people can express themselves in order to have the chance to form a Government."

Negotiations to agree on a coalition government collapsed on Tuesday, nine days after voters deserted the two formerly dominant parties in favour of smaller anti-bailout groups. The election left no party with enough votes for a majority in parliament.

International Monetary Fund Managing Director Christine Lagarde said political leaders in Greece needed to show resolve to stay in the eurozone, which would require it to stick to the terms of its bailout package.

She said: "I think what we should look at is the optimal scenario where the country has the political resolve to actually observe the commitment, comply with the undertaking, stay within the zone, which seems to be the desire of the population.

"But it goes with the effort to abide by the program which has been put in place and where the euro partners actually agreed to support the country."

She added that it would be "it would be extremely expensive and hard" for Greece and other countries if it were to exit the eurozone.