04-19-2015, 05:09 AM
"There are different sequences of events that could happen if Greece defaults, all of which might end up in a very nasty scenario - especially, when Greece is no longer able to access ECB (European Central Bank) funding facilities, such as its Emergency Liquidity Assistance (ELA) provision – as solvency is a requirement for ELA," Kuenzel said.
What would a Greek default look like?
"We have to earn the trust of our European partners, but they must also acknowledge that for five years they have been imposing a programme that makes matters worse. They need to convince us that they're serious about rebooting," he said. Mr Varoufakis clearly won the intellectual beauty contest in Washington, where most economists and officials broadly agree with his macro-economic analysis.
Grexit dangers mount as Greece's Yanis Varoufakis warns of 'liquidity asphyxiation' - Telegraph