Wednesday August 27, 2014 Search
Weather | Athens
31o C
24o 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)  
Ryanair to submit bid for Cyprus Airways
Draghi soothes bond market after summer of strife
New property tax details out
Minister takes up SMEs’ cause
Firemen battle fire in North Kynouria
Forty firemen were battling a wildfire that broke out in the area of Aghios Ioannis in North Kynouria, in the municipality of Arcadia in the Peloponnese on Wednesday. Two water-dumping aircr...
EU announces 3.7 million euro aid for Cephalonia
A proposal for special European Union funding worth 3.7 million euros for the Ionian island of Cephalonia following a 5.8 Richter scale earthquake and a series of aftershocks in early 2014 w...
Inside News
SOCCER
Roma signs Greece defender Manolas from Olympiakos for 13 mln
Greece international Kostas Manolas has joined Roma on a €13 million ($17 million) transfer from Olympiakos, as coach Rudi Garcia looks to strengthen his worrisome defense before Serie A sta...
SOCCER
Panathinaikos held in Super League opener, loses striker Berg to injury
Panathinaikos suffered a traumatic debut in the Super League on Sunday as they were held to a 1-1 draw by Levadiakos and lost star striker Marcus Berg for up to three months. The Swedish pla...
Inside Sports
COMMENTARY
Diplomacy, not dogmatism
A friend who moves comfortably within the circles of the European establishment recently described a particularly interesting experience when he found himself in a discussion behind closed d...
EDITORIAL
Preachers of hatred
Engaging in public dialogue regarding whether the anti-racism bill is mandatory and sensible is both legitimate and necessary at this current point in time. In the meantime, however, regardl...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Firemen battle fire in North Kynouria
2. EU announces 3.7 million euro aid for Cephalonia
3. University entrance exams results to be announced Thursday
4. Ryanair to submit bid for Cyprus Airways
5. Bishop Vartholomaios of Megara and Salamina dies
6. ND honorary president taken to hospital
more news
Today
This Week
1. ND gains one deputy as ousted MP sworn in Lamia mayor
2. Draghi soothes bond market after summer of strife
3. Venizelos hails Gaza ceasefire
4. ND honorary president taken to hospital
5. Bishop Vartholomaios of Megara and Salamina dies
6. Ryanair to submit bid for Cyprus Airways
Today
This Week
1. Carved sphinxes at Ancient Amphipolis tomb will not be removed
2. Brussels warns Greece over plans to allow construction near Korinos beach
3. Logged out of reality
4. Merkel cites euro’s ‘construction flaws’ as economy sputters
5. Second man held over double murder in Mani
6. Greek stock recovery fading away as ASE falls 21 pct on valuations
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.