US billionaire says drachma would trade at 25-50 cents to the euro


The Greek drachma would trade at 25 to 50 cents to the euro if the nation exits the European currency, U.S. billionaire Wilbur Ross said.

“It would be a pretty bad haircut for the people,” Ross said Tuesday in an interview on CNBC. “Cutting the value of the currency would automatically cut the value of the pensions and everything else.”

Ross said Greek banks have more collateral than needed, and might have as much as a week of cash left to meet their needs. He said the odds that Greece leaves the euro are about 60-40.

Ross’s investment firm, WL Ross & Co., was among a group of investors that pumped 1.3 billion euros last year into Athens- based Eurobank Ergasias SA, one of the nation’s four largest banks.