Preparing For A Greek Exit

September 4, 2012 in Daily Bulletin

For several reasons it looks like Greece could end up leaving the Eurozone. Businesses, at least, have begun to prepare for that eventuality writes Nelson D. Schwartz. Some of the precautions they have taken include:

  • Ford has updated its vehicle’s computer systems so that they can easily accommodate whichever currency Greece might choose to adopt after it leaves the Euro.
  • Bank of America Merrill Lynch has plans where it could send trucks filled with cash over the border into Athens to help its clients pay their employees.
  • JPMorgan Chase has created accounts that are equipped to handle new currencies for its high profile clients.
  • Visa and MasterCard promise that their systems would minimize disruptions to customers and retailers in the event of a Greek exit.
  • Businesses have also worked with consultancies to identify the possible timeline of a Greek exit. It would likely happen on a Friday after markets have closed. It would then be followed by a bank holiday as strict controls on the flow of capital are introduced.
  • One networking company has introduced a business continuity plan similar to those used to identify a course of action after an earthquake.
  • Another company has refused to extend credit to Greek customers, requiring them to pay in advance.

Read more about the steps that have been taken and what the Eurozone leaders have to say over here.

Source: The New York Times

Via: Marginal Revolution