Final Word from Monday, May 28, 2012
What happens if Greece pulls out of the eurozone? PM Petr Nečas
announced last week that his government and the CNB have
prepared steps for responding to such an eventuality, but he
declined to elaborate. An orderly withdrawal by Greece might not
mean anything of significance to Czechs, but some analysts say
a messy withdrawal could lead to bank runs across Europe.
Czech politicians and central bankers will no doubt come forth
with assurances that Czech banks are sound and that the crown
doesn't risk catching a euro-denominated flu. It's probably true
this time; Europe's demise is probably not yet upon us. But it
doesn't mean that Czech depositors won't face some temporary
inconveniences, such as withdrawal limits, if things get worse
before returning to a more normal state of perpetual crisis. So
holding a little more cash than usual is probably a reasonable
response to Nečas's remark.[Czech Republic Czech National Bank breakup departure Greek]
Glossary of difficult words
Grexit - a new word meaning the exit of Greece from the eurozone;
messy - confused and difficult to deal with;
demise - the end or failure of an enterprise or institution.