Economics

How a Liquidity Squeeze Could Push Greece Out of the Euro

Problem Is No One Is Recapitalizing Greek Banks

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By Nikos Chrysoloras, Marcus Bensasson and Christos Ziotis

February 16, 2015 at 7:36 PM UTC

Updated on

February 17, 2015 at 8:49 AM UTC

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The standoff between Greece and its creditors on how to proceed on its bailout program risks triggering a simultaneous cash and credit crunch, which could drive the country out of the euro area.

Here’s how a worst-case scenario could unfold: