January 27, 2012
Argentina's chaotic bankruptcy a decade ago triggered riots, looting and dozens of deaths. The prospect of that horror scenario playing out in Greece is focusing minds across Europe as the threat of default remains all too real.
At best, if private creditors walk away from a voluntary debt restructuring, a disorderly default would shut Greek banks for days to give Athens time to prevent a bank run by reassuring depositors that the lenders will not go bust.
At worst, if EU partners also pull the plug, Greece risks a chaotic descent into an extended bank freeze, possible shortages of basic goods, violence and what central bank governor George Provopoulos called the "hell" of a euro exit.
"If banks were hit, I could not import goods any more. I would have nothing to sell. How would I survive?" 66-year old shop manager Antonis Broukias asked in his old-fashioned books and stationery store in central Athens.
"I will surely shut down my shop, especially if we return to the drachma," Broukias said, adding that he was worried protests could turn violent.
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