ATHENS, Greece - Greece's biggest bank says that if the country exits the euro currency bloc the effect on the nation's populace would be dramatic.
As the country heads to a new round of parliamentary elections in mid-June, the National Bank of Greece said Tuesday that a eurozone exit “would lead to a significant drop in living standards for Greek citizens.”
The country's top lender said that Greeks would lose more than half their income and the value of the reinstated drachma currency would fall 65 percent.
In addition, it predicted that the Greek jobless rate would jump from 21 to 34 percent while inflation skyrockets from 2 to 30 percent.
A coalition government of Greek socialists and conservatives agreed earlier this year to impose a sweeping austerity plan in exchange for billions of dollars in new rescue funds from its European neighbors and the International Monetary Fund.
But the country's fractious political parties were unable to forge a new government after a splintered election earlier this month, leading to the new vote next month.
European leaders have repeatedly said they want Greece to remain in the 17-nation currency union.
But they also have said the Athens government must adhere to the austerity plan or it won't be handed any more rescue funds.
Recent political surveys show the conservatives leading, with an anti-bailout party, the radical left Syriza party, trailing close behind.
timesofearth.com
As the country heads to a new round of parliamentary elections in mid-June, the National Bank of Greece said Tuesday that a eurozone exit “would lead to a significant drop in living standards for Greek citizens.”
The country's top lender said that Greeks would lose more than half their income and the value of the reinstated drachma currency would fall 65 percent.
In addition, it predicted that the Greek jobless rate would jump from 21 to 34 percent while inflation skyrockets from 2 to 30 percent.
A coalition government of Greek socialists and conservatives agreed earlier this year to impose a sweeping austerity plan in exchange for billions of dollars in new rescue funds from its European neighbors and the International Monetary Fund.
But the country's fractious political parties were unable to forge a new government after a splintered election earlier this month, leading to the new vote next month.
European leaders have repeatedly said they want Greece to remain in the 17-nation currency union.
But they also have said the Athens government must adhere to the austerity plan or it won't be handed any more rescue funds.
Recent political surveys show the conservatives leading, with an anti-bailout party, the radical left Syriza party, trailing close behind.
timesofearth.com
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