Greek Businesses Fear Possible Return to Drachma
ATHENS — For the last couple of weeks, the phone at Tasos Ioannidis’s five-star hotel on the breezy island of Mykonos has been ringing steadily, but not with the types of inquiries he wants to field.
“People are saying they don’t want to confirm a stay or make deposits,” said Mr. Ioannidis, who owns the luxurious Belvedere Hotel, perched on a cliff over the Aegean Sea. “They are afraid of what could happen to their money if Greece leaves the euro and returns to the drachma.”
Worries that Greece might default on its debts or even leave Europe’s currency union have deepened since May 6, when Greeks voted in shocking numbers for a left-wing party willing to tear up Greece’s $170 billion international bailout agreement. These days, even though 80 percent of Greeks say they want to stay with the euro, talk of “drachmageddon” can be heard in conversations all around Athens — in executive suites, at mom-and-pop shops and even in nightclubs.
“A return to the drachma would be a nightmare,” said Mr. Ioannidis, whose bookings began to trail off a few months ago and slumped badly after the election. “It would create a panic for businesses and also for people wanting to do business with Greece.”
http://www.nytimes.com/2012/05/23/world/europe/greek-businesses-fear-switch-from-euro-to-drachma.html?src=recg
