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Clifford Chance

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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