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Major Greek banks 'could be forced to merge'

Some of Greece's biggest banks may have to shut and merge with their rivals, it has been claimed.

A European official told the Reuters news agency that Greece's four big banks - National Bank of Greece, Eurobank, Piraeus and Alpha Bank - could be reduced to just two.

European leaders are meeting on Sunday in a bid to strike a financial aid deal with Greece.

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EC President: Sunday marks 'final deadline' for Greece

Tsipras, second from left, in discussions including Angela Merkel, Jean-Claude Juncker and Francois Hollande. Credit: Sandra Steins/DPA

European Council President Donald Tusk has warned Greece that this week's deadline for a reform-for-loans deal is "final", after the country's Prime Minister was told to come up with new proposals by Sunday.

Speaking after today's summit of European leaders, Tusk said: "The stark reality is that we have only five days left... Until now I have avoided talking about deadlines, but tonight I have to say loud and clear that the final deadline ends this week."

Tsipras told reporters talks at the summit "took place in a positive climate" and said the process for a new Greek offer would be "extremely fast".

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