CCTV Script 05/07/15

– This is the script of CNBC's news report for China's CCTV on July 5, Friday.

Welcome to CNBC Business Daily, I'm Qian Chen.

During the past week, we've heard a lot about Greece -- capital controls, referendums and defaults.

The Greek people will have to decide on Sunday whether they are willing to accept a deal with international creditors.

Tspiras is campaigning for Greeks to reject the proposal, arguing that five years of Brussels-backed austerity has driven Greece to the brink.

However, while we are waiting for the result of the referendum, it might worth taking a look at what it cost Greece to get to this point.

During the past five years, Greece's GDP has plummeted 26% while wages have fallen 14%.

The unemployment rate remains high, around 26%, and 75% of the unemployed have been out of work for over ONE year.

Meanwhile, 20% of Greeks could not afford a proper meal.

At the same time, suicide rates have skyrocketed 40 percent.

While Tsipras may be right about the destructiveness of austerity, the way his government has gone about negotiating with their creditors has also cost Greece dearly.

For the past half year, Greece and the EU have been locked in fierce negotiations, filled with recrimination and distrust, and the Greek economy has ground to a halt.

Since January this year, on average, 59 Greek businesses have closed down each day.

Banks have been facing seriously cash outflows. Since mid-December last year, when elections were announced, more than €40 billion has been withdrawn by depositors.

That includes more than €5 billion the week before Tsipras' surprise announcement of a referendum as well as capital controls.

The true cost of shutting down Greek banks for a week are yet to be calculated, but analysts say it's safe to assume it will cost Greece at least hundreds of millions of euros in lost economic activity.

Bart Van Ark, Executive Director of The Conference Board, says any possible future deal has to include some debt relief.

[Bart Van Ark, Executive Director Economic Research, The Conference Board] "We are back to Square One. We lost 3 or 4 years of recovery that we could have had if we have pursued the old path. Now again, it was a mistake, we should have had some debt relief as part of the deal in 2010. But the new deal needs to have some debt relief, to get to reforms, and maybe in 2, 3 years times down the road, we will be back where we were, a couple of months ago."

If Greeks vote "Yes" for the deal with their creditors, it may be the EU's greatest victory.

But a failure will bring us to extra time of this lengthy Greek marathon.

A lot is riding on the upcoming result on Sunday.

CNBC's Qian Chen, reporting from Singapore.

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