IIF says there are some very important and damaging ramifications that would result from a disorderly default on Greek govt debt

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  • IIF document says hard default in Greece would lead to sizeable bank recapitalization costs, could easily be 160 bln euros
  • Default would hit ECB, Portugal, Ireland, Spain and Italy would also likely need support
  • “Hard to see” how contingent liabilities would not exceed 1 trillion euros

Reuters reporting.

Well there’s our first tape bomb.  EUR/USD down through 1.3200, presently at 1.3188.

Guess the IIF trying to concentrate a few minds as to what lies in store if/when Greece defaults.


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EU economy|european banking|Greece|IIF

Gerry Davies


  1. Got to wonder what the IIF will get paid for a successfull PSI :)

  2. I think the key term I continue to see coming up is “disorderly”. It seems like all the various acronyms are trying to do an “orderly” Greek default. Sort of like the idea of a “soft landing”. If that is possible, then banks figuring out CDS are worthless might be the tipping point in all this.


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