“Drachma Clauses”: Planning for Greece’s Exit from the Eurozone

The largest banks in Greece—National, Alpha, Eurobank, and Piraeus—reported €28.2 billion in losses for the year 2011. Almost 13% of GDP! It included the bond swap that had saddled private-sector bondholders with a 74% loss. But no worries. Rescue funds were already lined up at the Hellenic Financial Stability Fund, which had received €25 billion in bonds from the European Financial Stability Facility the day before—part of the second bailout package of €130 billion that the

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