Clifford Chance

The Greek debt crisis and loan agreements

29 May 2015

The Greek debt crisis has once again raised the possibility of Greece leaving the euro area (whether as a result of a Greek sovereign debt default or otherwise) as the escalating stand-off between Greece and the euro area, ECB and IMF shows little indication of dissipating.  The analysis of implications of a so called "Grexit" under market standard loan documentation remains much as we outlined in 2011.  However, concerns evolve over time and although probably the most extreme, a full Grexit is now just one of several potential scenarios.  In light of regulatory requests to update contingency planning, this briefing republishes and updates our answers to key questions concerning a potential Grexit and touches on the implications of the more intermediate possibilities of sovereign default and imposition of capital controls.

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