What a 'Grexit' could mean for your holiday: Full Q&A

Former_MSE_Helen

Many in the UK are worried about forthcoming holidays booked to Greece...

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What a 'Grexit' could mean for your holiday: Full Q&A




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Blue264

Last Tuesday, my OH was told by family living in Athens that the bank they had just visited were limiting over the counter cash withdrawals to 1000 Euros per person. For any more than that, you had to order for collection the following day.

This was still the situation on Friday when we last spoke to family there.

PeacefulWaters

Blue264 wrote: »

Last Tuesday, my OH was told by family living in Athens that the bank they had just visited were limiting over the counter cash withdrawals to 1000 Euros per person. For any more than that, you had to order for collection the following day.

This was still the situation on Friday when we last spoke to family there.

Many UK building societies have similar restrictions in place as normal practice.

Mersey_2

Yes, capital controls are now in place at two banks, but I haven't yet heard a Greek Govt announcement. I suppose they don't want to cause further runs on banks. Up to £1 Billion per day is being withdrawn.


One way or another they need to either agree a deal this week or just leave the Euro (and maybe the EU too).

NFH

What's to stop Greece from defaulting on its debts and continuing to use the euro after being ejected from the Eurozone? Montenegro uses the euro as its only and official currency, despite not being in the Eurozone, the European Union, SEPA or the EEA. If the European Central Bank and European Union can't stop Montenegro from doing this, then how can they stop Greece?

Cardew

NFH wrote: »

What's to stop Greece from defaulting on its debts and continuing to use the euro after being ejected from the Eurozone?

Nothing!


They could also use the US$ or any other currency.


The problem is the Government obtaining(earning) enough of any currency to pay their outgoings - wages/health service/police etc and not least pensions.


Having defaulted on their debts and outside the common market they will face sanctions.


Their solution will be to use the Russian Rouble, leave NATO, accept massive aid and become a satellite state of Russia.

phillw

If they are ejected then I am sure they will continue to use the euro in the short term. Once they have defaulted on their debts and have been kicked out of the euro then they won't need so many anyway. Imports could be a problem, but your own people will just get stuck without being able to withdraw their euros and have them turned into a worthless currency. I don't think they'll switch to the rouble, although Russia could be that reckless.

814man

The collapse of the currency would have a bit more impact on them than just not having to pay their debts. Greece is heavily reliant upon public sector workers who would not be paid, neither would pensions, leading to massive civil unrest. This is a situation that has not really been faced by a modern large country and the implications will be huge should it happen, which is why I'd expect that despite the current brinkmanship on both side, some form of settlement will be reached. I know many are seeing Russia as a potential savior in such a situation but the reality is that in their current financial state taking on the level of debt necessary to rescue Greece would be well beyond them.

Mersey_2

I assume they've printed a reserve currency in readiness. There's now huge queues at banks.


There's no provision in the rules for a Eurozone country to exit the Euro and remain within the EU, so they'd probably be forced to leave.

harz99

However you look at this crisis, one sure thing is that their tourist industry is going to suffer hugely.


Nobody with an iota of sense is going to be booking a holiday in Greece for some time until the dust has settled whatever the outcome this week.


Pity the Greek people, victims of the "great" Euro experiment and corruption.

duncansoton

I have flights booked to visit Greece in October and will be looking to book more either this year or early next year. I've got no particular concerns about travelling there having travelled extensively there for ten years. Obviously those less familiar with the country may do and that is entirely understandable given the amout of scaremongering in the daily papers.