7 potential outcomes if Greece defaults and leaves the EU
Duncan Richardson, News Editor
27 Jan 2015, 1:19 p.m.
Living standards would fall drastically, the costs of imports would surge and banks may face the prospect of collapse.
Greeks may withdraw their savings prior to their euros being converted into a new currency which would be worth less. To protect their capital banks may stop all withdrawals.
Sovereign debt crisis
International investors could become nervous about leading to other highly indebted nations such as Spain, Portugal and France.
In the event Greece exited the Eurozone lenders, and traders may be forced to sell their risky assets causing a stock market crash.
Banks and governments would face heavy losses on the loans lent to the Greeks resulting in creditor nations to stop lending
Business lending and investment would dry up. Ordinary citizens would reduce their spending as the bad news hit the media.
Greek debt default
Greece would be frozen out of the credit markets and eventually run of euros. Social Security payments would stop until the new currency is implemented. All debt repayments would stop and the Greek banks would go bankrupt.