04-22-2015, 11:16 PM
Euro-area officials at the IMF meeting said it’s not clear how long Greece has before it runs out of money. A default wouldn’t necessarily lead to an immediate Greek exit from the euro, three officials said. Instead, they said, it might trigger emergency measures like capital controls or a bank holiday, depending on which payments Greece missed and whether Greece would accept measures such as those used in Cyprus as a way to keep access to possible euro-area lifelines.
Euro Area Seeks Greece Roadmap to May Agreement to Avoid Default - Bloomberg Business
Were Greece to leave the euro, it would not have the same impact on the euro zone as it would have had two years ago, an ECB policymaker said on Monday, urging the Greek government to provide "numbers" to qualify for further aid.
ECB's Nowotny says impact of any Greek exit less now than before: TV | Reuters
Sure, it could happen. Greece could snub its lenders, run out of money, fail to secure additional funding and default on its debts. But the consequences wouldn’t be as horrific as many investors fear and jittery markets seem to anticipate. A Greek default, in fact, might be the very thing that speeds resolution of the whole Greek drama.
It’s time to stop worrying about Greece defaulting - Yahoo Finance
A Greek default would deepen the misery ordinary Greeks are enduring. But default wouldn’t necessarily force Greece to leave the euro zone and go back to its old currency, the drachma. Many press reports, in fact, treat default and a eurozone exit as synonymous. They’re not.
It’s time to stop worrying about Greece defaulting - Yahoo Finance
In the aftermath of default, Greece would be shut off from any further funding from the IMF, the European Central Bank or other such authorities. That’s why Greece, in theory, would have to exit the eurozone: It would have to start printing its own currency. But something else is much more likely to happen: The Syriza-led government would collapse, forcing the election of a new coalition. And a new government would probably be more willing to accept bailout conditions, returning Greece to the status quo and solidifying its place in the eurozone.
It’s time to stop worrying about Greece defaulting - Yahoo Finance
Greece probably has until late July to come to an agreement with its creditors. Possible delays in payments to the International Monetary Fund shouldn’t prompt the European Central Bank to shut off vital liquidity to Greek banks. By contrast, a default on marketable debt, specifically the failure of the Greek government to pay 3.5 billion euros due to the ECB on July 20, would probably force the central bank’s hand. The Greek government and its creditors are still likely to reach a deal on a list of reforms before that crucial date.
Why the Real Deadline for Greece Is July 20 - Bloomberg Business