Workers who have been laid off as a result of the debt crisis protest in Athens

Greek debt costs leapt yesterday as the French central bank warned that the banking sector in Athens is on the verge of collapse. The euro fell 0.6 per cent to $1.074 after International Monetary Fund and G20 meetings in Washington held out little progress on the prospect of Greece satisfying creditors to unlock €7.2 billion in financial aid by the end of the month.

Yields on Greek debt due to mature in 2017 hit new record highs, up by 131.4 basis points to breach 27 per cent. The interest rate yield on ten-year bonds increased 20.2 basis points to 12.7 per cent.

Amid an investor flight to safety, German ten-year borrowing costs resumed a fall towards zero and Belgium became the sixth eurozone country to