WHAT HAPPENS NOW?
Greece is broke and therefore needs European cash if its banks are to reopen today after being closed for a week. The amount of European Central Bank bailout money – or emergency liquidity assistance ( ELA) – reported to be immediately required is € 6 billion ($ 8.8 billion).
“If the ECB does not extend additional ELA it is very difficult to see how the banks can open on Tuesday as planned and the economic crisis will intensify,” ANZ’s head of global economics Brian Martin said. “In the absence of fresh and additional funding, the longer the failure to reach an agreement goes on the greater the pressure will rise on Greece to exit the euro.”
Greece is supposed to make further payments totalling almost € 3.5 billion to the ECB and other institutions on July 20.
WILL GREECE DROP THE EURO?
The referendum result “significantly raises the risk of a Greek exit from the euro”, St George Bank economist Jo Horton said. It would likely create a new drachma, but this could take six months.
WHAT WOULD IT BE WORTH?
The drachma would be devalued – estimates range from 30 to 80 per cent against the euro.