Capital controls likely to occur without breakthrough in Greece

Heads of state of Euro area scheduled an emergency summit for 22 June. There could be a last attempt to strike a deal to prevent a financial crisis for Greece.

"With the end-of-June IMF deadline fast approaching, Angela Merkel repeated this week that a deal was still possible, but if there's no progress next week we are likely to see immediate negative market reaction consistent with a crisis scenario", said Barclays. 

"If no progress is made before the end of the month, we would expect that from July the ECB would increase the haircut sufficiently to force Greek authorities to impose capital controls in order to avoid meltdown in the Greek banking system", added Barclays.