Gerich made the remarks on Saturday after the Eurogroup at a meeting rejected the time extensions requested for the Greek loan programme, which ends on Tuesday.
The Nordea analyst also believes that, after the Eurogroup decision, there will be some changes made in the Greek government.
“The ranks of the Greek government are already in tatters. Whatever happens in Greece in the next few days, some members of the government may change,” Gerich said.
Gerich believes that the ECB intends to freeze Greek emergency funding at the current level, and will no longer raise it.
In practice, it means that the Greek banks will be forced to adopt strict limitations as soon as possible.
The Greeks have borrowed billions of euros from banks in the past few days and the country’s banking system is being held aloft with ECB emergency funding.
The central bank does not intend to finance the banks indefinitely.
According to Gerich, extension of the ECB funding is entirely dependent on the political will of the EU countries.
