Comments on: Units and unities: can currency change really resolve the Greek tragedy? Wed, 16 Nov 2016 01:37:11 +0000 hourly 1 By: robinson99 Thu, 23 Jun 2011 16:01:09 +0000 A problem exists with loans and liabilities to banks. Presumably an act of parliament has to state that these will be owed in the new currency. Nationalised domestic banks can be forced to accept this devaluation of their advance. However it might precipitate the bank’s insolvency. However foreign banks might demand the loans are repaid in Euros. A lot will depend on the Loan Agreement small print. It will be a nightmare for people with secondary homes in Greece mortgaged abroad in Euros. There will be court cases all over Europe to unravel the position involving both Greek and foreign law as well as involving Common Market Human Rights legislation. Greece might even have to leave the Common Market to escape these treaty obligations.