Greek default ‘would cost €1,000bn’

A disorderly Greek default would cause more than a €1,000bn of damage to the eurozone and could leave Italy and Spain dependent on outside help to stop contagion spreading, the main bondholders group has said.

Greek default ‘would cost €1,000bn’

Greek private creditors have until tomorrow night to say whether they will participate in a bond swap that is part of a bailout deal to help it manage its finances and meet a debt repayment on Mar 20.

Investors will lose almost three-quarters of the value of their debt in the exchange. Finance minister Evangelos Venizelos said on Monday it was the best deal they would get and those who did not sign up would still be forced to take losses.

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