The Bank of Greece describes a potential exit from the Eurozone as a nightmare for Greece. The Drachma would be followed by a currency devaluation of 65%, the country’s inflation will rise up to 30% and unemployment rates will be increased by more than 10 points, reaching 34%.
This means that one euro would equal 561 drachmas, despite no one being sure how global markets would adjust to the exchange rates.
The publication of this report is of great importance, since this is the country’s greatest financial institution. Pavlos Mylonas, a prominent Greek economist, reports that Greek citizens’ per capita income will be decreased by 55%, affecting mostly the financially weak groups.
According to the Governor of the Bank of Greece Georgios Provopoulos, the inflation of 30% will be constantly increased, as imported products will make the prices go higher.
After the elections of May 6, the parties failed to form a coalition government and now global markets look forward to seeing what Greeks vote for on June 17. The fact is that pro-bailout party New Democracy and anti-bailout party SYRIZA are the first two, according to opinion polls, but they are so close to each other that no one could be sure which will be elected!
The IMF and the EU officials have already begun warning Greece that if SYRIZA gets elected, then the punishment will be an exit from the Eurozone. Is it a market trick, one has to wonder, because once the polls show New Democracy leading in the elections, the stock market index is increased only momentarily.
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
