# Any worries for the future ??



## samrvy (Mar 26, 2011)

I guys
Just wondering if anyone has any worries and views about the coming decisions to be made in greece. If the Greeks pull out of the EU how will this affect us Brits that own houses in greece etc ??? 
I look forward to hearing from anyone 
Thanks.


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## ruefguet (Dec 8, 2011)

This was in The Telegraph


How a Greek exit from the euro might unfold
By Angela Monaghan
GREECE’S decision to call a second, anti-austerity election has taken the country one-step closer to a dangerous exit from the eurozone. Below we sketch out how the process might unfold.

Q: How would Greece leave the euro?

A: No one knows for sure because it would be unprecedented. There was no legal mechanism put in place for a country to exit the eurozone when the single currency was created. The most likely scenario would involve the Greek authorities privately agreeing a date with the rest of the eurozone, the European Central Bank, and the International Monetary Fund, to formally exit. They may decide to announce the decision after the markets have closed, possibly on a Friday evening, to give investors a chance to digest the news.

Q: What would happen to the currency?

A: Greek euros would be converted into a new currency, probably the drachma. Euro notes would be stamped, while drachmas were being printed. After setting an initial conversion rate for the new drachma, at say 1:1 to the euro, the exchange rate would be dictated by currency markets. The drachma would immediately fall sharply.

Q: What would happen to the country’s debt?

A: Domestic debt would be converted into drachmas. A complicated legal row over whether Greece’s external debts would remain denominated in euros or be converted into cut-price drachmas would ensue. Money owed by the Greek government to its bond-holders, and money owed by Greek banks to the European Central Bank, would be the subject of renegotiation. Greece would continue to be locked out of capital markets, and would require new IMF loans against fresh collateral.

Q: What would happen to the banks?

A: Capital controls would be put in place to prevent a chaotic run on Greek banks. The ECB liquidity tap would be switched off, and banks would not have access to wholesale markets. Greece would have to recapitalise and potentially nationalise its banks.

Q: How much would a Greek exit cost?
A: It is near impossible to put a figure on how much a ‘Grexit’ would ultimately cost. The Institute of International Finance, which represents more than 450 financial institutions globally, has estimated the fallout at around €1 trillion. The IMF says about €422bn of Greek sovereign debt is held abroad, while the IESEG School of Management in Lille has estimated that total losses for France could reach €66.4bn and €89.8bn for Germany.

Q: What impact would it have on the UK and other countries?A: The contagion effect would be enormous. A Greek exit would introduce the principle that countries can exit the euro. Fellow bailed-out countries such as Portugal and Ireland would be put under renewed pressure, as would Spain and Italy. The ECB and its backers – notably Germany – would take a large hit. Although Britain’s direct exposure to Greece is limited, it is indirectly exposed through its exposure to other euro countries such as France. This could put pressure on UK bank funding costs, further restricting credit availability and pushing up borrowing costs for households and businesses. Confidence would be knocked, trade with the region hit, and a recovery further delayed.


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## Abyss-Rover (Mar 17, 2012)

So it's not surprising that the news is saying that many people in Greece are making big withdrawals from their bank accounts.


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## ruefguet (Dec 8, 2011)

The number I read today was €1Bn a day currently being withdrawn. That is a lot of mattresses to fill.


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## scoobie (May 25, 2009)

Not just Greeks removing their money, we are too. Just not willing to risk it at this moment in time.


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## asimenia (Feb 20, 2012)

I wish I had some money to move! Thanks to non-paying Greeks and the legal (joke) system we are owed 150,000 euro for building materials - even the Dimos Zalogo (Epirus) owe us 6,000!!!! and won't pay. In turn we owe payments for their building materials to the manufacturers - approx 60,000 euro. I am keeping my clothes shop open by the skin of it's teeth - making only enough to pay bills/rent (shop - forget TEBE)and food for the house. Husband not working. No income coming in - court costs to try and get the money owed. So I wish I was in a position to be able to send money to UK - at the moment I live hand to mouth. Should another tax payment come up - I definitely will not be able to pay .........


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## wka (Sep 18, 2009)

I'm worried, but I've assumed for over a year that a Euro exit for Greece was inevitable anyway, and have done what I can to protect us from too much upheaval in such an event! I don't own property in Greece (too poor for that!) but as a US citizen, there are some aspects of a Euro exit that could help me (USD should be worth more here). I would assume that UK citizens with UK income or UK assets would benefit in the same way. Of course the knock-on effects to the US and UK economies are still unknown.


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## Jolly Roger (Dec 4, 2011)

samrvy said:


> I guys
> Just wondering if anyone has any worries and views about the coming decisions to be made in greece. If the Greeks pull out of the EU how will this affect us Brits that own houses in greece etc ???
> I look forward to hearing from anyone
> Thanks.


This was the original question. Greece could be forced out of the Eurozone, but would remain a member of the EU, just like other countries such as the UK which preferred to keep their own currency.


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## samrvy (Mar 26, 2011)

A question for the Grocer !!
What's your views / worries on the crisis for people with houses in greece 
( a friend suggested that you may be the one to ask )
Thanks and sorry to lay this on to you 
Best wishes samrvy


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## The Grocer (May 30, 2010)

samrvy said:


> A question for the Grocer !!
> What's your views / worries on the crisis for people with houses in greece
> ( a friend suggested that you may be the one to ask )
> Thanks and sorry to lay this on to you
> Best wishes samrvy


The answer is certainly dependent on if you have a mortgage on the property in Greece or not.
If Greece were to revert to the Drachma and you have a mortgage in Euro's, it clearly is bad news if your income was earned in Greece; however if the mortgage was with a Greek Bank and they converted the outstanding amount to Drachma, then of course provided your income is in GBP from the UK things might not be too bad, as I suspect the pound / drachma exchange rate will be extremely favourable for us Brits.

However property prices have fallen and the market is totally flat. Now is definitely not the time to sell. On a brighter note if Greece does leave the Euro then with a competitive exchange rate tourism will blossom and holiday property rentals will increase (you could rent out). 

The house tax system is again in disarray with yet another change to property tax due. The average for last year was around 4 euros per sq.m paid through your electric bill. It was to be continued, but this is a little up in the air at present as there is talk on a direct property tax paid separately. 

The main concern is of the Government that comes into power. A leftist government might be OK, but any communistic government is likely to put Europeans off visiting Greece.

I am not sure where your property is but do not believe all you see on the UK News. Yes Athens might be worth avoiding, but certainly down here on the Peloponnese things are as quiet as normal, yes people are not so well off, and villagers have taken up that bit more growing their own veg, but its not all bad.

I am unsure if this addresses your question. However as I am off to mainland Europe for the next 3 months tomorrow my access to internet will be a bit more restrictive so forgive me if I do not respond so quickly......


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## The Grocer (May 30, 2010)

scoobie said:


> Not just Greeks removing their money, we are too. Just not willing to risk it at this moment in time.



Very wise. keep as little in Greek banks as possible


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## samrvy (Mar 26, 2011)

The Grocer said:


> The answer is certainly dependent on if you have a mortgage on the property in Greece or not.
> If Greece were to revert to the Drachma and you have a mortgage in Euro's, it clearly is bad news if your income was earned in Greece; however if the mortgage was with a Greek Bank and they converted the outstanding amount to Drachma, then of course provided your income is in GBP from the UK things might not be too bad, as I suspect the pound / drachma exchange rate will be extremely favourable for us Brits.
> 
> However property prices have fallen and the market is totally flat. Now is definitely not the time to sell. On a brighter note if Greece does leave the Euro then with a competitive exchange rate tourism will blossom and holiday property rentals will increase (you could rent out).
> ...


Thanks Grocer. Yes this puts my mind at ease a little. Enjoy your mainland visit.


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