Will the Crisis in Greece Affect The UK?

On Tuesday 30th June Greece defaulted on a significant payment to the International Monetary Fund. After failing to make a £1.5 billion payment to the IMF, Greece must now wait to hear whether or not they will be granted emergency aid from the European Central Bank in order to pay wages and pensions. Greece are now in arrears to the IMF, locking them out of any financial assistance until the debt is cleared.

How will the Greece crisis affect you?

Greece’s plight also holds consequences for much of Europe, including the UK. However, according to Governor of the Bank of England Mark Carney, the impact of Greece in the UK should be minimal:

“The United Kingdom is relatively well insulated from the direct consequences of events in Greece. UK banks' exposures to Greece are very small relative to their capital bases. The footprint of Greek banks in the UK is tiny compared to the size of our economy”.

While the impact on the Euro currency could be more significant, which in turn could affect the UK more noticeably, we have been assured that necessary safeguards are in place.

A full report on Greece’s failure to make their payment can be found here.