Greece. Currency swap period

Max K

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I wonder how it will be accomplished. This won't be an elective process but rather more a forced hand one. Will all withdrawals of day to day currency be suspended and accountholders be told to take their cash in hand to their banks for immediate conversion? Will there be mass hoarding of Euro notes? How will we foreigners fare if we're already in the country but with no bank account? Will there be mass discounting for paying in Euros?

Bears being given some thought.

Max.

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AndrewB

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There's been speculation about this elsewhere on this forum. FWIW the following is my worst-case scenario about the "hard landing" if no further help is forthcoming from the ECB et al.

At minimum notice (probably on a Sunday) Greece will replace euros with some form of promissory equivalent: call it the Gr-euro. By promissory I mean the new currency will "promise to pay the bearer in euros" - if and when Greece ever can do so. Greek bank accounts will immediately convert all accounts from Euros to Gr-euros; and the Bank of Greece will issue its own notes in the familiar denominations so that, for example, over the next few days Greek cash machines switch from dispensing euros to Gr-euros at a nominal conversion rate of 1:1. But the real value of these promissory notes will slide, because effectively they mean the holder is taking a share in the Greek debt that is never likely to be repaid in full. The first sign of this will, as you say, be a discount for true euros, but in due course the promissory notes must be allowed to find their own value, which will happen when Greece tries to pay its debts with them, and then be replaced by a new currency.

There has already been a heavy run on the Greek banks by people withdrawing (real) euros such that last week they had to apply for emergency funding. The first step, before the above, could well be the imposition of very tight limits on euro withdrawals from Greek accounts, but this would not necessarily affect anyone withdrawing cash from accounts elsewhere in Europe through a Greek bank.
 
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Max K

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There's been speculation about this elsewhere on this forum. FWIW the following is my worst-case scenario about the "hard landing" if no further help is forthcoming from the ECB et al.

At minimum notice (probably on a Sunday) Greece will replace euros with some form of promissory equivalent: call it the Gr-euro. By promissory I mean the new currency will "promise to pay the bearer in euros" - if and when Greece ever can do so. Greek bank accounts will immediately convert all accounts from Euros to Gr-euros; and the Bank of Greece will issue its own notes in the familiar denominations so that, for example, over the next few days Greek cash machines switch from dispensing euros to Gr-euros at a nominal conversion rate of 1:1. But the real value of these promissory notes will slide, because effectively they mean the holder is taking a share in the Greek debt that is never likely to be repaid in full. The first sign of this will, as you say, be a discount for true euros, but in due course the promissory notes must be allowed to find their own value, which will happen when Greece tries to pay its debts with them, and then be replaced by a new currency.

There has already been a heavy run on the Greek banks by people withdrawing (real) euros such that last week they had to apply for emergency funding. The first step, before the above, could well be the imposition of very tight limits on euro withdrawals from Greek accounts, but this would not necessarily affect anyone withdrawing cash from accounts elsewhere in Europe through a Greek bank.
Yes Andrew, that is how I see it and maybe this morning's news brings crunch point ever nearer. Two tills in shops is already common in some places but for a different, though not disconnected reason!

We have sufficient cash to last us until we temporarily return home on the 21st but when we come back, what will greet us is anyone's guess. A general strike? Mass unrest? Resentment of foreigners visible apparent prosperity? The imposition of the new cruising tax? Interesting, if mot a little daunting times.

From a very tranquil and isolated Port Leone, Kalamos Island.

Max.

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sailaboutvic

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Yes Andrew, that is how I see it and maybe this morning's news brings crunch point ever nearer. Two tills in shops is already common in some places but for a different, though not disconnected reason!

We have sufficient cash to last us until we temporarily return home on the 21st but when we come back, what will greet us is anyone's guess. A general strike? Mass unrest? Resentment of foreigners visible apparent prosperity? The imposition of the new cruising tax? Interesting, if mot a little daunting times.

From a very tranquil and isolated Port Leone, Kalamos Island.

Max.

.
Max please stop worring about greece , enjoy your sailing , enjoy life , what going to happen will happen , I am no expert on greece or any other country come to that , but I supect would will greet you went you return will be the same you found when you left , after 18 years of sailing on and off greece the only really change I seen is it getting more expences , more charges for us yacht and I guess a lot more to come as the years go on , the only people who seen to know what going on in Greece seen to be YBW forum , they can tell you the date the cursing tax is coming in , when greece will exit euro and when the the new government will be kicked out for another one ,
More is written about greece here then any other country , don't anyone cruise any where else ?
Enjoy Greece it a lovely country. great cruising but we all need to except it changing .
:)
 

Max K

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Max please stop worring about greece , enjoy your sailing , enjoy life , what going to happen will happen , I am no expert on greece or any other country come to that , but I supect would will greet you went you return will be the same you found when you left , after 18 years of sailing on and off greece the only really change I seen is it getting more expences , more charges for us yacht and I guess a lot more to come as the years go on , the only people who seen to know what going on in Greece seen to be YBW forum , they can tell you the date the cursing tax is coming in , when greece will exit euro and when the the new government will be kicked out for another one ,
More is written about greece here then any other country , don't anyone cruise any where else ?
Enjoy Greece it a lovely country. great cruising but we all need to except it changing .
:)
That bit about all the know-alls on these forums is very true Vic. One of them couldn't organise a barbecue in a marina without trying to charge Notting Hill prices but that is another story! We too have sailed in Greece for many years. 14 with this boat but regularly since 1978. Yes there have been changes but I intend to hang on to as much of MY cash as I can. I don't intend to end up like Greece so I will always try to anticipate.

Max.

.
 

Tony Cross

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That bit about all the know-alls on these forums is very true Vic. One of them couldn't organise a barbecue in a marina without trying to charge Notting Hill prices but that is another story! We too have sailed in Greece for many years. 14 with this boat but regularly since 1978. Yes there have been changes but I intend to hang on to as much of MY cash as I can. I don't intend to end up like Greece so I will always try to anticipate.

Max.

.

But in the Lounge thread you have been berating the Greeks for doing exactly that!
 

Tony Cross

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BTW, have YOU ever tried to organise a barbecue in a marina and been undercut?

One year when I organised the annual Easter spit roast (which we have done every year for the last 8 years) there was a small splinter group who organised their own lamb roast in the same location and at the same time. I won't tell you why because it would embarrass the ringleader.....
 

grumpygit

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That bit about all the know-alls on these forums is very true Vic. One of them couldn't organise a barbecue in a marina without trying to charge Notting Hill prices but that is another story! We too have sailed in Greece for many years. 14 with this boat but regularly since 1978. Yes there have been changes but I intend to hang on to as much of MY cash as I can. I don't intend to end up like Greece so I will always try to anticipate.

Max.

.

Impressed, someone with some gumption and a dagger . . . . a rare quality these days on this ever so boring and pc forum.

But does any of this amateurish verse of forum politics/economics really matter at the end of the day, I think it's time to stop flogging the dead horse on Greece until something concrete happens. We're here in Greece and at the end of the day there is bugger all we can do about it's probable demise, Euro or Drachma, in or out.
We are only mere mortals that just happen to be here at this point in time and the only decision we can make with the impending outcome is whether to stay in Greece or leave.
 

sailaboutvic

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Impressed, someone with some gumption and a dagger . . . . a rare quality these days on this ever so boring and pc forum.

But does any of this amateurish verse of forum politics/economics really matter at the end of the day, I think it's time to stop flogging the dead horse on Greece until something concrete happens. We're here in Greece and at the end of the day there is bugger all we can do about it's probable demise, Euro or Drachma, in or out.
We are only mere mortals that just happen to be here at this point in time and the only decision we can make with the impending outcome is whether to stay in Greece or leave.

I think that sums it up ,
 

Tony Cross

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Impressed, someone with some gumption and a dagger . . . . a rare quality these days on this ever so boring and pc forum.

But does any of this amateurish verse of forum politics/economics really matter at the end of the day, I think it's time to stop flogging the dead horse on Greece until something concrete happens. We're here in Greece and at the end of the day there is bugger all we can do about it's probable demise, Euro or Drachma, in or out.
We are only mere mortals that just happen to be here at this point in time and the only decision we can make with the impending outcome is whether to stay in Greece or leave.

True, but if you take that attitude we probably shouldn't bother discussing anything!
 

grumpygit

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True, but if you take that attitude we probably shouldn't bother discussing anything!

Well I think if we just take one example "Greece ups the anti" on The Lounge. Here there must be nigh on 2100 posts, god knows how many of them are yours plus pages and pages in every newspapers we read. If you go back through the last few years of Forum history as you'll already know there is countless threads, and don't you realise nothing has really changed apart from new Greek governments.
Well you might call this discussing, I call it absolute overkill to the point where people just lose interest. May be flogging a dead horse was not descriptive enough, it should have been flogging a dead herd of horses.
 
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Well I think if we just take one example "Greece ups the anti" on The Lounge. Here there must be nigh on 2100 posts, god knows how many of them are yours plus pages and pages in every newspapers we read.

I was not aware of any rule that made anyone read every post on every subject.

I only read, and contribute to, posts on subjects which interest me. You could do the same.

John
 

Tony Cross

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Well I think if we just take one example "Greece ups the anti" on The Lounge. Here there must be nigh on 2100 posts, god knows how many of them are yours plus pages and pages in every newspapers we read. If you go back through the last few years of Forum history as you'll already know there is countless threads, and don't you realise nothing has really changed apart from new Greek governments.
Well you might call this discussing, I call it absolute overkill to the point where people just lose interest. May be flogging a dead horse was not discriptive enough, it should have been flogging a dead herd of horses.

Nobody is forced to read any thread. Clearly some people are enjoying commenting on Greece because that thread is updated almost daily. If you don't like it then don't read it. Simple.
 
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