What happens if Greece leaves the Euro?

[muscleman]

 

 

OK one mechanics questions. In the event of a Grexit would Greece simply say that a euro is worth N Drachmas on day of exit and convert all their sovergn debts to Drachmas in the same ratio? If so that would be ugly....

 

 

Are they allowed to do that? I remember back in 2011, the Greek government bonds got restructured under the UK law. It used to be under the Greek law. I wonder how much difference does that make.

Or maybe they will announce again that private sectors holding their euro bonds will be forced into Drachmas bonds, and public sectors will not be affected?  ::)

[tombgrt]

Those frikkin' Greeks... Would have bet it was solved by now. My frustration is growing and to celebrate the half year (plus minus) anniversary of this mess, I sold some INLOT the last few days.

[investor-man]

Those frikkin' Greeks... Would have bet it was solved by now. My frustration is growing and to celebrate the half year (plus minus) anniversary of this mess, I sold some INLOT the last few days.

 

If the Greeks have to make concessions, I think a deal is unlikely to be reached until the last possible moment, because it would be bad, from a political perspective, to accept a deal with concessions when there is still time left to negotiate - it's like giving up.

 

I think a deal will be made. The Greek people want it, and the Greek government has sidelined the nazi-talk and Varoufakis.