Quote:
Originally Posted by temple5
I read in an article from some UK paper that the most likely scenario is (not sure if true)...
1 Banks close to convert all euros to drachmas on a 1:1 basis.
2 All debts are reworked to be due in drachmas on a 1:1 basis with Euro
3 As soon as markets open the market will decide the actual exchange in which case its likely to be max worth 30pct of the Euro which decreases Greek external debt by 70pct
After the initial drop it will come back but at what exchange rate, who knows. Probably in the 1/3D/1E
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I read that article, and I can't see two and three as being acceptable to the Banks or the countries involved. At least the 1 to 1.
At this point if they even agree to it all of the other countries with heavy debts will demand the same thing.
Its more then likely that if they accept the exit they might accept Greek Currency but at a more realistic estimated market value.
There's no reason why they would accept a 1 to 1 repayment with Drachmas only to see the value of that repayment drop to 30% after the repayment..