Monday Jan 26, 2015 Search
Weather | Athens
17o C
10o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
IMF warning on Greek eurozone exit

By Sotiris Nikas

Exiting the euro would entail a dramatic decline in Greeceís gross domestic product, a fearsome increase in prices and a temporary improvement in the countryís competitiveness that would quickly evaporate, a report by the International Monetary Fund warns.

The IMF analysis suggests that a return to the drachma would signal an abrupt change to the lives of ordinary Greeks. Notably, the downward shift for the economy by the end of the decade would be considerably worse than what is expected after the application of the memorandum that Athens has signed with its international creditors.

With the drachma, the country would suffer a crash landing before slowly working its way up in the future. By contrast, Greece will have better results through a gradual fiscal adjustment if it stays in the eurozone, the Fund believes.

The IMF report is an appendix to the new memorandum that Greece has signed with its creditors and estimates that an exit from the euro would reduce the real exchange rate by 50 percent within 2012. It also forecasts that such a scenario would also lead other countries out of the eurozone and inflict a serious blow to the blocís banking system.

Leaving the euro would also see the Greek debt swell considerably, as part of it would remain in the strong euro and would have to be served by a weak national currency.

ekathimerini.com , Sunday April 22, 2012 (23:28)  
Talks with troika the main test
Fiscal gap from revenues at 2.3 bln euros
Liquidity noose tightening around local lendersí necks
Banks make plans for tackling impact of Swiss francís growth on borrowers
SYRIZA heads for historic victory but without majority
SYRIZA was on the verge of a historic election victory on Sunday night but one that might not hand the leftist party an outright parliamentary majority, raising doubts about whether a govern...
Prison probes violent attack against N17 convict Xeros
Authorities at Domokos Prison in central Greece were investigating over the weekend an attack by an inmate on November 17 terrorist Christodoulos Xeros. According to Xerosís lawyer, Fragisko...
Inside News
SOCCER
Olympiakos overcomes depleted OFI at Iraklio
Easy though it may seem, Olympiakosís 3-0 win at depleted OFI Crete was rather difficult on Saturday, but was enough to keep the Reds on top on Saturday, as they have maintained their two-po...
BASKETBALL
Tremendous Spanoulis sweeps Laboral Kutxa
A hot second half was enough for Olympiakos to undo visiting Laboral Kutxa and score its fourth win in as many games at the second round of the Euroleague on Friday. The 76-64 final score wa...
Inside Sports
FOCUS
A SYRIZA government in Greece: what it wants and what might be possible
The left-wing SYRIZA party led by Alexis Tsipras looks likely to win the Greek general election on Sunday after campaigning on a pledge to renegotiate the countryís international bailout and...
COMMENTARY
The train
If we go by the polls, SYRIZA is set to win Sundayís election and form a government. New Democracy did not really campaign, or perhaps it did so in a way that can only be explained if the pa...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
†RECENT NEWS
1. SYRIZA heads for historic victory but without majority
2. Prison probes violent attack against N17 convict Xeros
3. Talks with troika the main test
4. Fiscal gap from revenues at 2.3 bln euros
5. Liquidity noose tightening around local lendersí necks
6. Banks make plans for tackling impact of Swiss francís growth on borrowers
more news
Today
This Week
1. SYRIZA heads for historic victory but without majority
2. Greek Elections 2015 | LIVE
3. Greek Elections 2015 Results | LIVE
4. Greeks vote for reform path or defiance
5. A SYRIZA government in Greece: what it wants and what might be possible
6. Exit polls suggest big margin of victory for SYRIZA
Today
This Week
1. Greek Elections 2015 | LIVE
2. Grexit the only way out of Ďvalley of tears,í says Hans-Werner Sinn
3. Greek Elections 2015 | LIVE
4. No debt writedown or rolling back of reforms for Greece, says Finland's Stubb
5. Greeks fork out nearly 5 pct of their incomes on telecom services
6. QE exclusion a Ďde facto Grexití
†††Find us ...
††... on
Twitter
†† ††... on Facebook ††
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.