Hellenic Federation of Enterprises: The Impact of a Grexit

Thursday, February 9th, 2017
Last Update: 22:25

Leaving the eurozone sounds about as ludicrous as someone filthy rich coming along and paying off the Greek debt, The Hellenic Federation of Enterprise (SEV) commented and went on to describe the impact this sort of solution would have on the country.

According to SEV, the country’s exit from the euro would make it impossible to cover the imports of goods and services and the production structure would collapse. It also underlined that the country will be marginalized and the Greeks will become deprived to a much greater degree and will gradually be forced to withdraw from the European Union.

In addition, if a GREXIT happened, there would be a conversion of assets and banks’ liabilities to a new devalued currency, but the debts to the European Central Bank would remain in euros resulting in negative equity, or alternatively, banks would go bankrupt and nationalized by printing money.

Regarding the extent of implementing the budget at a general government level, for the whole of 2016 SEV confirms the achievement of a large primary surplus, adding that despite the good performance of revenues — especially at the end of the year — revenue from taxes and contributions showed reduced dynamism, as did exports in December but did not upset the overall good progress throughout 2016.

Finally, the organization said that those who have deposits in Greek banks will lose most of their savings, and those who have loans will be able to pay with money from abroad.

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