What Will Happen If Greece Does Not Reach an Agreement?

greek-crisisIn an attempt to assess the future of Greece in case no agreement is reached before June 30, Bloomberg answered five critical questions.

If the Greek side and the country’s creditors are not able to reach an agreement over the next few days, then the country will not immediately have to declare bankruptcy, however, Greece will not be able to operate without imposing capital controls. The payments default will not lead directly to a Grexit, while the government will have to finance itself for some weeks or months.

What will happen on June 30?

“Greece’s second bailout, agreed in February 2012, expires after it was extended twice since December. Without extra time again or a new accord, Greece will lose access to the funds (7.2 billion euros) remaining from its official creditors – the European Union, the European Central Bank and the IMF, noted the news agency.

Is there a possibility for a bailout extension?

The extension of the existing program without the disbursement of money will not help Greece, because the country will not be able to repay its debt. Moreover, a new bailout program extension requires the approval of the German Parliament, as well as other institutions.

Can the ECB continue to lend Greece money?

Mario Draghi is committed to supporting Greek banks as long as they are considered reliable and to provide sufficient collaterals. “While the end of the bailout wouldn’t mean the banks automatically become insolvent, the quality of collateral will come into question.”

What would happen if Greece does not pay the IMF installment?

“Missing an IMF payment in itself doesn’t constitute a default. The euro zone’s bailout fund, however, would have the option to accelerate Greece’s payment schedule on the bonds it holds. Should a deal be agreed, the fund may refrain from doing so, assuming that aid would be unlocked in a matter of days,” explained Bloomberg

When will Greece run out of money?

Greece will run completely out of money as soon as the ECB pulls the plug on Greek banks. On July 20, Greece will be required to repay 3.5 billion euros to the ECB and another 3.2 billion euros on August 20. If the country fails to make the payments, the first consequence will be a restriction bank capitals movement.


  1. pathetic information with a political agenda … sadly …
    Your banks will be closed within days …

  2. Ok lets say greece get an agreement.This not ends greeces problems,much must be change that greece start to financial growth and some day start to pay back the huge loan.More taxes to rich people ,work for everyone:thats a huge problems!

  3. Ioanna a brief but accurate description of scenarios. This is why the “ultimatums” are having little effect and as we know from our history, we do not react to such leveraging in ways as those that are making them expect us to do. Apparently a history lesson for the Lenders would be helpful.