Saturday September 20, 2014 Search
Weather | Athens
27o C
19o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
NBG report warns of euro exit chaos

 It says reverting to the drachma would see per capita income fall 55 pct

A National Bank of Greece report painted on Tuesday a dramatic picture of the country should it decide to exit the eurozone, less than three weeks before the new general election, while on Wednesday the European Commission is set to recommend the full and uninterrupted implementation of the bailout agreement during the presentation of its reports for individual member states.

The NBG report suggests that the average annual income of each Greek citizen would shrink by no less than 55 percent, with a similar decline in the value of real estate and bank deposits. Per capita income would shrink from 19,400 euros per annum today to just 8,700 euros, which would be lower than that in Croatia, Poland or Latvia.

The country’s gross domestic product would drop by at least 22 percent and the jobless rate would soar to 34 percent, mostly hurting young people, women and low-skilled workers.

Moreover, inflation would jump to 32 percent, with lending rates reaching up to 37 percent while the new national currency would be devalued by up to 65 percent.

The report stresses that an exit from the common currency “does not constitute a case study anymore or a development with a minimal possibility.”

It adds that the atmosphere is so “flammable” that dropping out of the eurozone could even happen due to “improper handling.” In this context the analysts of the country’s biggest bank say that “a stop in funding amounts to immediate default.”

They also suggest that in such a case Greece would require another debt restructuring by 80 percent, with its debt being then in a foreign currency (mostly in euros). The ratio of nonperforming loans to deposits would exceed 33.3 percent.

Finally, the report says, there would be extreme phenomena of uncertainty, social unrest and panic in the economy during the transition to the national currency, while most Greek companies -- especially outward-looking ones -- would face serious problems in the process.

Meanwhile, Brussels is set to confirm on Wednesday that it is freezing Greece’s fiscal adjustment program until a new government to apply it is formed in Athens.

ekathimerini.com , Tuesday May 29, 2012 (23:13)  
Record sum of new debts to the state in August
‘Greece can meet its needs on its own’
Cyprus civil servants´ strike called off
Elliniko investors eye Cyprus project warily
Mayors resisting evaluation to face disciplinary action
Mayors and municipal employees who refuse to take part in a civil service evaluation scheme the government has undertaken as part of commitments to international creditors will face discipli...
Fyssas rally demonstrators face prosecutor after clashes
Sixty-four people arrested in Keratsini, a suburb of Piraeus, on Thursday, following clashes with police during an anti-racist march marking the one-year anniversary of the murder of rapper ...
Inside News
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
SOCCER
Financial crisis forces Greek second division postponement
Greece's second soccer division Football League announced on Wednesday the postponement of the start of the season due to financial difficulties being faced by most clubs. "The board of dire...
Inside Sports
COMMENTARY
High stakes after the Scottish vote
We will soon know whether the Scots voted for their country’s independence or whether they will remain citizens of the “United Kingdom of Great Britain and Northern Ireland.” What was alread...
EDITORIAL
Breathing room
Even Greece’s biggest critics find it hard to deny that the debt-hit country has achieved an unprecedented fiscal turnaround within a very short period of time. Sure, progress in promoting t...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Record sum of new debts to the state in August
2. ‘Greece can meet its needs on its own’
3. Mayors resisting evaluation to face disciplinary action
4. Fyssas rally demonstrators face prosecutor after clashes
5. PM in energy talks ahead of crucial meeting with Merkel
6. Attiki Odos Lamia exit to close Sunday
more news
Today
This Week
1. ‘Greece can meet its needs on its own’
2. Record sum of new debts to the state in August
3. Hardouvelis signals Greece may skip IMF loans to exit aid curbs
4. EIB signs deals with Greece for 815-mln investment in infrastructure projects
5. Dozens of arrests at march to mark anniversary of Fyssas murder
6. Syntagma metro station to close for Fyssas tribute concert
Today
This Week
1. Greece on standby
2. Greece at bottom of social justice scale among EU28
3. Central Athens traffic restrictions back in force on Monday
4. Lost in the fog
5. Democracy under Pressure | Live Streaming
6. SYRIZA spokesman suggests gov't sought to stop NERIT airing Tsipras speech live
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.