Sat, 19 July
28.1 C
Yerevan
USD: 383.74 RUB: 4.93 EUR: 450.05 GEL: 141.25 GBP: 521.81

Parallel currency could emerge in Greece- Deutsche Bank says

YEREVAN, May 22, /ARKA/. If Greece’s next set of elections produces a government opposed to its bailout, this could lead to a parallel currency to the euro emerging in the country, rather than a formal exit of the euro zone and return to the drachma, German Die Reinische Post newspaper said quoting economists at Deutsche Bank.

In a note, Deutsche Bank said Greece was unlikely to leave the euro as this would result in “widespread default and a collapse of the banking sector, which could lead to economic, social and political catastrophes.”

Instead, the bank’s economist Thomas Mayer in Frankfurt thinks a more likely scenario would be a partial stop in financial assistance, with continuing support for debt-servicing needs and the Greek banking sector but no further support for the financing of the government’s primary expenses.

“In this case, (the) difficulties of the Greek government in paying its bills could induce it to issue IoUs that would form the nucleus of a national parallel currency,” the world’s biggest currencies-dealing bank said, dubbing this parallel currency the “Geuro”.

This would allow Greece to devalue its exchange rate without formally exiting the currency union. -0-

spot_img

POPULAR

Euro falls by 1.14 drams against Armenian dram, as US dollar rises slightly

The average market exchange rate of the US dollar against the Armenian dram as of July 11, 2025, increased by 0.17 points compared to July 10 and amounted to 383.91 drams.

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

“We want the word ‘investor’ in Armenia to mean normality, not elitism” – Freedom Broker Armenia

ARKA news agency spoke with Freedom Broker Armenia Director Ovak Ovakimian about the transformation of investment thinking, company strategy and trust as an economic value.

Annual meeting of BSTDB Board of Governors to be held in Yerevan

The President of the Black Sea Trade and Development Bank (BSTDB) Serhat Köksal expressed his gratitude for hosting the annual meeting of the BSTDB Board of Governors in Yerevan during a meeting with Armenian Prime Minister Nikol Pashinyan on Tuesday.

In Armenia, bad loans worth over $1 million have been written off under the state support program – Ministry of Social Affairs

14,757 applications for writing off bad loans have been received in Armenia within the framework of the relevant state support program, which started on February 1, 2025.

LATEST NEWS

spot_imgspot_imgspot_img