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Greek euro exit would be very costly

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: 1757 | Comments: 20 | Votes: 0 | Favorites: 0 | Shared: 0 | Updates: 0 | Times used in channels: 2
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