ECB Prepares For Grexit, Anticipates 95% Loss On Greek Debt

The European Central Bank (ECB) is preparing for a possible Greek exit from the euro zone. In internal model calculations, the central bank has already calculated the consequences of different scenarios on the prices of Greek government bonds.

Fernando González Miranda, head of risk analysis of the ECB, assumed for his model calculations three different developments of the Greek crisis, the magazine reports. These variants have also been presented to our colleagues from the Bundesbank few days ago.

Under this method, the value of Greek government debt - currently around € 320 billion - in the event of a sudden, "accident-like" Farewell to the Greeks from the Euro-zone ("Graccident") shrink to around 5 percent of the principal amount .... http://www.zerohedge.com