June 6, 2023

News Cymru

Two sides to every headline

Greece – How Greeks Can Isolate Themselves From A Greek Government Default

There is one fundamental issue that could affect all Greeks in a default.

Despite the economic problems in Greece being solely down the Greek government, unless Greeks take action, they leave themselves vulnerable to the consequences of a government default.

It is not in any doubt that the Greek banks would close their doors if the government were to default.

Greek who lost their money in this way would be vulnerable and it would require either the private sector  or the Greek or EU governments to come in and recapitalize the Greek economy.

This would not happen immediately.

Given that money is arguable the most valuable and definitely the most liquid asset Greeks have, if Greeks want to isolate themselves as much as possible from the effects of a Greek government default then Greeks need to think carefully where their money is.

If Greeks have their money somewhere where it couldn’t be taken away from them due to problems with the finances of the Greek government they will be much better prepared.

If for example, Greeks were to keep their Euros under the mattress, if the Greek government were to default the effects on the private economy would be negligible compared to the mess that would result if Greeks lost all of their money because they kept it all in the bank.

I personally would recommend to all Greeks, especially during these uncertain times, to keep the bare minimum amount of money in your Greek bank account.

If you can separate your financial well-being from that of your bank, you will be in a much better prepared if the Greek government ever were to default.

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