What happens if I am in Greece if they default or pull out of the Euro

dug123

I have been trying to find out the answer to this question and so far the information below seems the most sensible I can find.

Firstly it makes not a jot of difference where your euro notes have been printed or issued.
If the Greek banks collapse and or Greece defaults on its debts, the Greek government will have to adopt a new currency.
All banks and cash points will be closed and stay closed for several days, while an initial conversion to the new currency takes place.
Greece does NOT have a warehouse full of Drachmas waiting to be issued, these will need to be printed which takes time, Therefore, all euro notes circulating in Greece will then stay in Greece. There will be border checks to stop any euro note currency leaks.
Financially, Greece will be sealed off for a few days. During this time, ALL euro notes within Greece will be marked. Once marked they will then be circulated as Drachma.
Expect the new Drachma to depreciate by 50% overnight. So your €1000 Greek holiday money converts to 1000 drachma. 1000 drachma now only buys €500. Overnight.
So when you have had your notes marked (which will take a few days to organise) and you come home and take them down the high street to be converted back to pounds you will not actually be exchanging Euros you will be exchanging Drachma (and get the lower conversion rate).
If you fail to get your Euro holiday money marked in Greece as Drachmas (assuming you have the time and understand how to do it!) They will be confiscated at the airport in Greece by special border controls and you will have no holiday money to convert.

I would appreciate the views of people who know more about these things than me.
Thanks

Doshwaster

The simple answer is that NOBODY KNOWS what would happen. Your post contains lots of interesting speculation but very few facts. Making statements such as "they will be confiscated" isn't helpful.

I'm also interested in hearing how any government can force the stamping of all notes in the country. If I have a box full of Euros under my bed, how is the government going to make me? Surely the incentive for the population would be to keep them as Euros as a "harder" currency.

dug123

Hi, I have been searching for the most likely reasonable answer and my post is based on what I have been able to find out reading various articles and commentary. I think most of it is based on what has happened previously ie Argentina 2001 etc.
It is certainly not my opinion but at least it gives me an idea of what to expect.
Thanks for your reply.

sillygoose

I am going to Greece end of August so have an interest in this but I don't think it will actually come to it, not for quite some time at least. The Greeks are against cuts not the Euro - The political parties are just jostling to out do each other on who will be tougher on resisting the austerity measures. Whoever finally gets power will have to negotiate with the other states again. This will take time before or if their default becomes irreconcilable. But...I will be taking a Euro prepay card and paying for things with that, drawing smallish amounts of cash as I go. Because as pointed out in the op, it is possible that you could be left with devalued currency. I think it unlikely until some way later this year at worst. Its questionable if blocking currency leaving would be applied to foreign nationals returning home or with only a reasonable amount of cash, rather than life savings in a carrier bag!

prowla

I do not believe that the Euros would be confiscated/re-branded, since they would become foreign currency.

I would assume that there would have to be a period of parallel running.

Mr_Wang

Just take a bank card and draw cash out as and when.

Problem solved

Will be there in July and haven't really given it a second thought tbh.

dug123

Mr_Wang wrote: »

Just take a bank card and draw cash out as and when.

Problem solved

Will be there in July and haven't really given it a second thought tbh.

I do not believe all of my first post but I the bit I do believe is that all the cashpoints and banks would be closed whilst they sort themselves out.

johnfarquhar74

Mr_Wang wrote: »

Just take a bank card and draw cash out as and when.

Problem solved

Will be there in July and haven't really given it a second thought tbh.

I'll be there (Corfu) in July/August also. Whilst I'm not panicking I will be taking precautions. I usually just draw money out overseas with my Santander Zero card, I aim to do this but as has already been posted, if Greece exits the euro, there will not be a lot of warning and the banks will be shut for a few days. Experts think they could close on a Friday, open on the Monday.
So, I will always make sure I have plenty of euro currency on me, some sterling as well as sterling traveller cheques. I've not used traveller cheques for years but at least if they are not used they can be deposited straight back into my current account!