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Greece and failure

No need to link the news stories on the decision by the Greeks to hold a referendum and I think that everyone will already have their own opinions, some of which will be unprintable

But what are the longer term consequences for exporters to Greece if they leave the euro? Well not very good. As I see it, many businesses in Greece will be indebted in euros but will then be stuck with trading with a hugely devalued currency (the “New Dracma”). Unless european banks come to some sort of write off agreement, then Greek firms will be collapsing like dominos

I would imagine that obtaining any credit insurance for exports to Greece at the present time and anyone who is exposed with unsecured debt should be very concerned indeed. In fact it would surely be suicidal to trade in that manner until this mess is resolved one way or another

But there is a silver cloud for the London business community. An early post of mine related the story of Wind Hellas who controversially registered in the UK to head into administration. Many professional firms did rather well out of that and whilst i wouldn’t suggest that UK IPs and lawyers set up a trade show in Athens (just yet anyway) i am sure that a few have their eyes very closely on the situation

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