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Greek exit could cost euro zone 100s of billions| Reuters

(Reuters) – A Greek exit from the euro zone could expose the European Central Bank and the currency bloc it seeks to protect to hundreds of billions of euros in losses, landing Germany and its partners with a crippling bill…

…With most of Greek’s private creditors having taken heavy writedowns as part of the country’s second, 130 billion euros bailout, it is estimated that the ECB, International Monetary Fund and euro zone nations hold approaching 200 billion of its debt.

“In the event of an exit, they (Greece) will default. And the loss given default will probably be very high, high enough to eliminate the ECB’s capital,” said Andrew Bosomworth, senior portfolio manager at asset manager Pimco.

“They might need recapitalisation from governments, who are not exactly in the best position to provide additional capital.”

Those are not the only losses the ECB and its national shareholders might face…

via Insight – Greek exit could cost euro zone 100s of billions of euros | Reuters.

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