Eurozone debt crisis: how Greece could exit the euro

As global companies draw up contingency plans for a Greek exit from the euro, we examine the feasibility of Athens’ departure – from new drachmas to illegality and €1 trillion costs.

It’s a tradition of Greek theatre that the real action takes place off-stage. Much the same might be said of the euro drama.

A second bailout and last week’s repayment of a €14.5bn (£12.1bn) bond has produced a dramatic lull in proceedings. Even the president of the European Central Bank said last week that the worst of the crisis is over. But does anyone actually believe there is not another Act to come?

Not if you look at what is going on behind the scenes. Whatever the politicians may pretend, governments, banks and companies continue to make contingency plans for a Greek exit from the euro. And, arguably, the terms of the latest bailout make one easier.

A quick recap of the state Greece is now in highlights the challenges ahead. Athens has got its debt down from €368bn – or a ruinous 163pc of GDP – by strong-arming the private holders of €206bn of bonds into accepting an effective 74pc loss on their loans, once lower coupons are taken into account. Read More