As Greece Falls Is italy and Portugal Next

Sunday, June 28th, 2015

As Greece ordered its banks and lenders to shutdown for 6 days from Monday referendum, the question arises of the likely impact if Greece actually defaults and possibly even leaves the Eurozone currency.

According to, Greece is at the top of the list with Italy and Greece close behind. Since its banks have been closed, it is uncertain when they re-open what will be the currency they will use for its depositors. If Greece can’t get the ECB to restart emergency lending it may be the only alternative is for Greece to print its own currency so its banks can satisfy depositors and still function. 

However what is the real impact of the overall Eurozone, if Greece does exit, potentially Italy, Spain Portugal and other countries may face the  problem of bond markets, bank runs and overall distrust with the Eurozone region.

For example the picture from below show how Italy and Portugal are vulnerable as well.

The Bank of Greece indicates that Greek banks significantly relied on central bank funding with Greek Domestic deposits from €179 billion in September 14 to €139 billion to May 15.

However  similar to Cyprus, what will happen to deposit holders who have over €100,000, will they receive a haircut on deposits once if the Euro currency is lost.  




Article by James Jones

The views expressed are the subjective opinion of the article's author and not of

Tags: greece , greek banks

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