CMS Guide: Eurofit – managing the risks arising from the Eurozone crisis
The impact of the vote against the bailout terms in Sunday’s Greek referendum, Greece’s failure to meet one of its repayments to the IMF and its introduction of capital controls are starting to have a noticeable effect.
The Eurozone has given Greece until Thursday 9 July to present new proposals to secure a deal with creditors, and has called a full EU summit for Sunday. Some commentators are reporting that Greek banks could collapse within days if they don't get emergency liquidity from the ECB.
Greek citizens can no longer transfer money abroad and are limited to withdrawing €60 a day. The restrictions on the use of credit cards for foreign payments are also being felt by the online payment market, which relies on money transfer services to make and receive transactions across the globe.
In this guide we explore some of the key issues associated with a possible Eurozone fragmentation, such as a Greek exit from the Eurozone.