Grexit: Grief Or Gift?

On July 5, the Greeks voted emphatically against their creditors' proposals. Earlier that week, the IMF released a report in which it recommended a comprehensive recover plan that included a debt relief or a debt moratorium for at least 20 years.

WHO IS AT RISK?

Previous bail out plans have mainly served to reduce the exposure of private creditors, i.e mostly the French and German banks. Nevertheless, some of the current debt is still in the hands of private creditors, as shown here.

Foreign banks have only been marginally exposed to Greek debt since 2012 (around €3.3 billion). It is assumed they are no longer taking any positions in the Greek debt save for risk management purposes. As a result, most market activity involves selling positions in Greek debt or risk reduction by amending any financing documents to which Greek debtors were parties. Those private investors which are still exposed to Greek credit are mostly bond holders.