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Greek euro exit would be very costly

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If Greece has to leave the eurozone the cost will be massive.

The European Central Bank and the single currency bloc's governments and banks would be hit with a bill of hundreds of billions of euros.

It is estimated that the ECB, the International Monetary Fund and eurozone nations hold close to 200 billion euros worth of its debt.

A Greek exit from the euro would mean Athens defaulting on those loans which is why the IMF is ready for the worst. IMF chief Christine Lagarde explained: "We at the IMF have to be technically prepared for anything, because it is our job. But I'm not suggesting that this is a desirable solution. I'm just saying this is within the range of multiple options, one that we have to technically look at, obviously."

Economists say Athens' default following a Greek euro exit would wipe out the European Central Bank's capital reserves.

Added: May-18-2012 Occurred On: May-18-2012
World News
Tags: greek, greece, exit, leave, euro, costly, Europe, lazy, semi-turks
Location: Athens, Attica, Greece (load item map)
Views: 1637 | Comments: 20 | Votes: 0 | Favorites: 0 | Shared: 0 | Updates: 0 | Times used in channels: 2
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