With the intensity of the eurozone crisis reaching its critical peak with many experts foreseeing Greece ultimately bailing out on the euro, we carefully look at the possible impact it will bring to consumers, traders and speculators. One thing inevitable and certain it’s no longer a question of if but rather when. With many speculations on the conclusive resolution of the eurozone crisis and Greece’s potential drop in the euro what then will be the impact it will have on people planning for a European holiday?
The effect it will potentially have on the cost of borrowing is certainly something to contemplate upon. Many banks from around the world especially the ones coming from Britain have already given loans to the ill fated nation with well over $167.7bn. This resulted in many bank caches to suffer tremendously with the uncertain reimbursements due to the amount of money lost directly or will even lead to loss of confidence of bankers to give loans for fear that would lend money to vulnerable peers. This will directly upset the balance of many UK banks to fund and loans for existing patrons and new clients. Savings for the current economic condition are expected to compel the BoE to maintain the base rate low in the long run to attract more people to deposit their money. The impact on investments however is rather disastrous in the short term with the FTSE 100 falling 3.1 per cent in three days alone. Nevertheless, with European equities performing rather poorly it doesn’t reflect the possible worse long-term effect for the remaining stock markets worldwide.
For investors setting their strategies whether or not to recall their investments out from Banco Santander this is an authorised agent regulated by the Financial Services Authority and deposits with a maximum coverage of £85,000 by the Financial Services Compensation Scheme. The bank’s spokespersons reassured its patrons that it operates under a subsidiary scheme therefore the structural model acts as a failsafe to further thwart possible problems in the unlikely event of financial difficulties. In other words, the money circulating in the UK will stay safe in the UK. Moreover, it is definitely a perfect time to buy euros due to their value dropping low against the pound it will however potentially strengthened once more and stabilise and will still be the currency of choice in the eurozone.
The UK debit and credit cards will also be accepted in Greece which is basically the only way people, traders and vacationers can pay following the supposed aftermath of Greece dropping the currency. The safest way to go about spending in the aforementioned country is using the dynamic currency conversion when making payments in a foreign currency even if country will begin to refuse accepting euros. Finally profit gaining is still possible by purchasing euros and waiting for the currency to stabilise again in compared to the sterling.